Bankrupt PG&E Seeks to Pay Out $130 Million in 2018 Bonuses

(Bloomberg) -- PG&E Corp., the California utility owner that filed for bankruptcy Tuesday, is seeking to pay employees about $130 million in performance bonuses for last year.

With the company facing $51.7 billion in total debts, the bonuses “are critical to ensuring that employees stay motivated,” according to a filing made in bankruptcy court.

About 14,000 employees are eligible for the short-term incentive plan cash awards for 2018, for achieving performance targets and individual goals. The payouts range from about $5,000 to $90,000 per person, not including senior officers and directors.

PG&E also wants to maintain a rewards program that gives out gift cards to workers who go “above and beyond” their regular duties. The total cost is about $15.2 million a year, and the company is seeking to pay out $650,000 in outstanding awards.

To contact the reporter on this story: Brian Eckhouse in New York at beckhouse@bloomberg.net

To contact the editors responsible for this story: Lynn Doan at ldoan6@bloomberg.net, Will Wade, Tina Davis

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