WCI Communities requests court approval of employee incentive plan conditioned on financial goals

By Jennifer Lanning Drey

Portland, Ore., Jan. 2 - WCI Communities, Inc. requested court approval to adopt an incentive plan for key employees, according to a Wednesday filing with the U.S. Bankruptcy Court for the District of Delaware.

The company said it has been losing valuable employees since filing for Chapter 11 bankruptcy due to the extraordinary workloads required to compensate for downsizing and attrition.

As a result, WCI said it has become more difficult for the company to meet its business objectives.

Under the proposed employee incentive program, incentive bonuses would be conditioned on the achievement of at least 90% of targeted 2009 consolidated financial objectives.

The targeted financial levels include attaining cash flow from operations before land purchases of $31.9 million and gross margins on home and tower sales of $17.5 million.

The company said 65 key managers would be eligible for the program.

The maximum payout under program would be between $2.3 million and $3.9 million, depending on the level of consolidated financial achievements.

A hearing has been scheduled for Jan. 20.

WCI, a Bonita Springs, Fla.-based home building and real estate services company, filed for bankruptcy on Aug. 4 in the U.S. Bankruptcy Court for the District of Delaware. Its Chapter 11 case number is 08-11643.

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