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Bankrupt California utility wants to give $235M in bonuses

Pacific Gas & Electric Corp. is seeking a judge's approval to pay $235 million in bonuses to thousands of employees despite the California utility's bankruptcy.

Posted: Mar 7, 2019 11:26 AM
Updated: Mar 7, 2019 4:16 PM

SAN FRANCISCO (AP) - Pacific Gas & Electric Corp. is seeking a judge's approval to pay $235 million in bonuses to thousands of employees despite the California utility's bankruptcy.

PG&E said in a court filing Wednesday that the money is intended to provide incentives to workers and will not be distributed if the company doesn't meet safety and financial goals.

It said the bonus program has been restructured with its Chapter 11 case in mind.

PG&E filed for bankruptcy in January in the face of billions of dollars in potential liability from huge wildfires in California in 2017 and 2018.

The utility scrapped its plan to pay $130 million in bonuses for 2018. Attorneys for wildfire victims had objected to the awards.

The new bonus figure is for work in 2019.

PG&E gave the following statement to Action News Now: 

"PG&E’s 2019 employee incentive plan prioritizes safety and operational excellence, with safety accounting for 50% of the performance metrics.PG&E believes that this at-risk component of our employees’ compensation provides appropriate incentives for our team members to help us achieve our safety and operational goals. The 2019 plan was formulated to provide continued market-based compensation and appropriate incentives for participating employees, with a focus on both strong performance and our most important priorities. The company’s most senior leaders are not eligible to participate in the 2019 employee incentive plan."

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