A123 Systems, Inc. (NASDAQ:AONE), Taxpayer stimulus waster has declared financial bankruptcy. The interesting part is that the executives of the company apparently getting driven to bankruptcy as well.
CEO David Viaeu and his lieutenants have run the company into the ground after receiving more than $279 million in Recovery Act funds and minimum $135 million from Michigan taxpayers. Yet, they have asked a bankruptcy court judge to receive up to $4.2 million in executive and withholding bonuses to see through the conquest of the company, probably by Johnson Controls.
NLPC has detailed the expedient nature of the leadership of A123 in the month of February. At the time A123 had unwaged 125 workers in the month of November at its two plants in Romulus and Livonia, Michigan. Officials of the company said waning production by A123’s top customer, Fisker Automotive, has resulted in cutbacks. A123 had expectations of delivering batteries for 7,000 plug-in hybrid Fisker Karma models. However, defective wire harnesses in the vehicles reduced Fisker’s production to 1,500 for the year 2011. Also, in December, A123 has to mend dozens of batteries that had been fixed in Karmas due to the possibility for coolant leaks. At that time, Wall Street analysts and Forbes magazine had posted that A123 experienced a doomsday scenario and that together with Fisker they might make up two Solyndras for the cost of one.
Despite the blunders and failures, company directors awarded top executives with big salary perks on 8th February despite a sharp downward course in its stock price after DOE cut Fisker off. Chief Financial Office, David Prystash was bumped 27% to $380,000 while Robert Johnson, VP of Energy Solutions, got an increase of 51% from his base salary.
A123’s compensations committee of its Board of Directors has modified payment terms of its top officers should control of the company change hands.