Relativity Asks Court to Approve $900,000 for Employee Retention Programs
The studio has already lost five employees since filing for Chapter 11, with another three scheduled to exit in the coming weeks.
On the eve of its third bankruptcy hearing, Relativity filed a motion late Monday night asking the court to approve a key employee incentive program for five of its top executives.
The program — which would cover president Tucker Tooley, managing director Carol Genis, co-chief operating officer Greg Shamo, CFO and co-chief operating officer Andrew Matthews and Relativity TV chief Thomas Forman — would total about $315,000, excluding employer contribution taxes. Relativity CEO Ryan Kavanaugh is exempt from the program and is said to be currently taking an annual salary of $1.
The studio also filed a separate motion requesting an order to approve its key employee retention program. That program, which would cost an additional $589,000, would affect 80 additional employees.
“Relativity has created and is proposing these employee incentive and retention plans to help motivate and retain talent throughout the sale process, which will help us maximize the value of our assets,” a Relativity spokesperson said in a statement.
Relativity is trying to staunch an executive exodus that could greatly diminish the value of the bankrupt company and is one of the reasons why it is pushing for as quick a sale as possible. According to court filings, Relativity has lost five employees since filing for Chapter 11, with another three scheduled to exit in the coming weeks. A hearing on the two motions is scheduled for Sept. 10, with objections due by Sept. 3.
Today’s hearing, which begins at 11 a.m. ET, will discuss the bidding process.