Interstate Bakeries revised board of directors pay schedule approved

By Caroline Salls

Pittsburgh, March 22 - Interstate Bakeries Corp. obtained court approval to amend the compensation structure for members of its board of directors to increase the annual retainer, according to a Thursday filing with the U.S. Bankruptcy Court for the Western District of Missouri.

The directors' annual retainer will be increased to $75,000 from $30,000; the audit committee chairman's annual retainer will be increased to $15,000 from $5,000; and the annual retainers for the chairmen of other committees will be increased to $7,500 from $2,500.

The board was reconstituted on Jan. 5, and Interstate said most of the members of the reconstituted board were not serving at the time the company's Chapter 11 was filed.

In order to attract such new members, the company said an increase in board compensation to market levels was discussed with some board members before their appointment.

As a result, raising board compensation to competitive levels is, therefore, required to meet the expectations of the new board members and to retain the services of the entire board throughout the bankruptcy case.

Interstate, a Kansas City, Mo., bakery operator, filed for bankruptcy on Sept. 22, 2004. Its Chapter 11 case number is 04-45814.

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