Lingle goes after HawTel

March 20th, 2009

Gov. Lingle released this statement at 7:25 tonight:

HONOLULU – Governor Linda Lingle issued the following statement relating to Hawaiian Telcom’s motion filed in Bankruptcy Court to pay employee bonuses.

“The decision today by Hawaiian Telcom to ask the bankruptcy court to approve $6 million in bonuses for its employees is unconscionable, and we will oppose it in court.

“Hawaiian Telcom is the critical communications backbone for our state, and its action to pay millions in bonuses puts the company in a precarious position that jeopardizes its long-term viability, as well as threatens Hawai‘i’s economic recovery.  

“The fact that company president and CEO Eric Yeaman himself turned down a bonus shows that he clearly recognized bonuses were wrong and counterproductive to Hawaiian Telcom’s efforts to restructure its finances and operations.  He could have and should have put an immediate stop to this outrageous action.”


3 Responses to “Lingle goes after HawTel”

  1. Susan:

    I believe that no CEO that takes a company down should ask for money to give bonuses to themselves and any employee of the company. Stimulus money should never be used to pat anyone on the back for a job poorly done. Are these CEO’s is their right mind???? Anyone that does that should be put infront of the taxpayers and see what will happen to them. Most of us are suffering to make ends meet and afraid for our family and friends who already have had hugh losses suffering. Seeing this greed by these CEO’s are an embarrasment to humanity. What is the problem with them? They only think about their own pockets full of green and our pockets with holes in it. How can we paint these CEO’s a better picture of what is happening here??

  2. Red Rhino:

    When I worked in corporate america we had a simple requirement for bonuses. First, the owners/shareholders had to get a minimum return on their investment. Once that target was reached the employees, all the employees, split the remainder with the shareholders. In other words, we had to be profitable and the more profits we made the bigger our bonuses. When did corporate america lose sight of the basics?

  3. Christopher Murphy:

    Hawaiian Tel has been on the way down for a long time, since before being divested from Verizon.
    Verizon gutted it of whatever was useful, allowed it to stagnate prior to selling it.
    Then, Carlisle Group finances the purchase of it as someone seemed to have grand plans. It’s too bad the grand plan of going head to head w/ Oceanic bombed. I might have bought in to that.
    Personally, I think we should just let it file bankruptcy and liquidate. A new company may spring up to replace it, maybe not.

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