IRVING, TEXAS — Amid a flood of media reports that Gregory Rayburn, acting chief executive officer of Hostess Brands, Inc., will not take part in a company-wide pay cut or take bonuses, the Irving-based company issued the following statement today:
“Mr. Rayburn is a retained professional in the company's bankruptcy proceedings and, as such, his compensation is subject to the final approval of the Court. Since Mr. Rayburn is not a Hostess employee, he receives no health or other benefits. Similarly, he is not included in any incentive plans that have been approved by the Court for the wind down of the company.
“Mr. Rayburn remains committed to leading the wind-down efforts, including the marketing of the company’s assets, in order to maximize value for all stakeholders, including employees.”
Hostess’ wind-down plan was approved on Nov. 30 and includes $1.8 million in bonuses for executives. Mr. Rayburn was eligible for a bonus of between $375,000 and $1.125 million, but opted to forgo the money.
Mr. Rayburn was appointed by Hostess to act as c.e.o. after the company filed for bankruptcy for a second time. His monthly pay of $125,000, or $1.5 million a year, remains unchanged.