Just before Hostess Brands went into bankruptcy, executives gave themselves large pay increases. The CEO at that time, Brian Driscoll, received a raise tripling his earnings from $750,000 to $2.55 million.
Other executives received smaller increases which averaged about 80%, even though it had been decided the company needed to declare bankruptcy. “But this is the age of corporate greed. It is now the norm rather than the exception for CEOs to put their own greed ahead of the interests of the company they’ve been entrusted to run,” writes Leslie Land in the Daily Kos.
At the same time, executives at the venerable baker of Twinkies, Snowballs and cupcakes put out the word it was unionized pay which had crippled the company. Driscoll is no longer with Hostess and most of these salary increases have been rescinded. The current chief executive took a salary hit out of corporate embarrassment resulting from his predecessor’s money grab last summer.
“The Teamsters are understandably furious. Hostess’ top managers demanded 7,500 Teamster employees accept drastic wage and benefit cuts after they raised their own pay by as much as 300 percent,” Land wrote.