Pope & Talbot granted court OK for plan linking bonuses, asset recovery

By Jennifer Lanning Drey

Portland, Ore., April 23 - Pope & Talbot, Inc. was granted court approval to terminate its current executive incentive plan and replace it with a management incentive plan that partially bases management's bonuses on the company's level of recovery on asset sales, according to a Wednesday filing with the U.S. Bankruptcy Court for the District of Delaware.

The current executive incentive plan is a quarterly cash incentive program based on EBITDAR and individual performance, according to the motion requesting the changes.

The new management incentive plan replaces the EBITDAR component of the plan with one based on the level of proceeds recovered from asset sales prior to April 15.

The company believes the new plan is more appropriate in light of its pending asset sales and the fact that most of the participants in the current incentive program will be employed by the purchasers of the company's assets.

Pope & Talbot, a Portland, Ore.-based pulp and wood products company, filed for bankruptcy on Nov. 19, 2007. Its Chapter 11 case number is 07-11738.

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