Williams Industrial’s employee bonus plan draws trustee objection

By Sarah Lizee

Olympia, Wash., Aug. 31 – Williams Industrial Services Group Inc.’s proposed key employee incentive plan drew an objection from Regions 3 and 9 U.S. trustee Andrew R. Vara, according to documents filed Wednesday with the U.S. Bankruptcy Court for the District of Delaware.

Vara said he objects to the approval of the KEIP because the proposed metrics appear easy to achieve and therefore are not truly incentivizing.

“The KEIP is an impermissible insider retention bonus, and approval of the KEIP should be denied,” he said in the objection.

“The debtors are left to their burden to demonstrate that the KEIP is truly incentivizing and is not impermissible under the bankruptcy code.”

Under the KEIP, the debtors propose to pay four senior leadership employees a total of $200,000 if they are employed by Williams Industrial through the closing date (or terminated for reasons other than for cause) and the sale of substantially all the debtors’ assets closes.

Atlanta-based Williams Industrial Services is a provider of infrastructure related services to blue-chip customers in energy and industrial end markets. The company filed bankruptcy on July 20 under Chapter 11 case number 23-10961.

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