Sungard seeks approval of up to $4 million employee retention plan

By Sarah Lizee

Olympia, Wash., June 29 – Sungard AS asked for approval of an up to $4 million key employee retention program, according to a motion filed Tuesday with the U.S. Bankruptcy Court for the Southern District of Texas.

The KERP provides for payment of cash awards to about 121 key employees, 77 of whom are employed by a debtor entity and 44 of whom are employed by an affiliate that supports a debtor entity in some way.

Amounts due under the KERP would become payable upon the earlier of March 31, 2023; 90 days after exit from Chapter 11; or upon qualifying termination.

The company said that by implementing the program for key non-insider employees, it is seeking to mitigate the continued loss of employees to competing employers able to offer job security that a company in Chapter 11 cannot match.

Sungard is a Wayne, Pa.-based provider of disaster recovery services, managed IT services, information availability consulting services and business continuity management software. The company filed bankruptcy on April 11 under Chapter 11 case number 22-90018.

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