Brazos seeks approval of up to $2.4 million employee bonus plans

By Sarah Lizee

Olympia, Wash., May 14 – Brazos Electric Power Cooperative, Inc. is seeking court approval to implement a key employee incentive plan and a key employee retention plan, according to a motion filed Thursday with the U.S. Bankruptcy Court for the Southern District of Texas.

At the target level, the debtor estimates that the total cost of the proposed compensation plans will be about $2.4 million, consisting of around $468,000 in awards for senior management through the KEIP and $1.9 million in awards to non-insider key employees through the KERP.

Additionally, the debtor seeks approval of about $320,000 in payments for awards that were earned by pre-petition performance but did not vest pre-petition under the debtor’s long-term incentive plans.

The KERP includes about 370 of non-insider employees and the KEIP includes six insider members of the debtors’ senior management team.

“The debtor’s ability to maintain its normal business operations, preserve the value of its assets, and maximize creditor recoveries hinges on the debtor’s ability to retain and incentivize key employees during this critical and uncertain period,” the company said in its motion.

Brazos Electric is a 3,994-megawatt generation and transmission cooperative based in Waco, Tex. The company filed bankruptcy on March 1 under Chapter 11 case number 21-30725.

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