LG. Philips Displays USA requests court approval of key employee retention and severance plan

By Caroline Salls

Pittsburgh, March 28 - LG. Philips Displays USA, Inc. requested court approval of a retention bonus and severance plan for its three employees and a non-employee controller and director, according to a Monday filing with the U.S. Bankruptcy Court for the District of Delaware.

The company will offer severance equal to one year's salary, plus unused accrued vacation, and it intends to require each employee to waive any additional claims as a condition for receiving benefits under the retention plan.

In addition, the company will offer a retention bonus to its president, who has accepted a higher-paying job effective April 14.

President Patrick T. Canavan has agreed to assist LG. Philips on an as-needed basis after April 14, and, therefore, the company said it believes he is entitled to a retention bonus.

The retention plan's proposed severance obligations also include a severance payment for the company's controller, the motion said.

LG. Philips Displays USA, a San Diego-based producer of TV and computer monitor tubes, filed for bankruptcy on March 15. Its Chapter 11 case number is 06-10245.

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