FTX Incentivizes Staff With $4M Bonus Program Boost

Key Points:

• FTX is seeking to introduce a $4 million bonus program to retain employees with critical skills, according to court documents filed on Tuesday.
• The overall package is capped at $4,027,204, and no bonuses will be paid to directors or officers of the company, founder Sam Bankman-Fried and his family, or any staff believed to be involved in wrongdoing.
• FTX’s proposal comes after a New Jersey judge approved a $10 million staff retention program for bankrupt crypto company BlockFi in January.

FTX is seeking to introduce a $4 million bonus program to retain employees with critical skills, according to court documents filed on Tuesday.

The company’s CEO, John J. Ray III, has proposed offering bonuses of up to 94% of salary to prevent employees with knowledge of programming or company accounting practices from leaving the company. The proposal will be considered at a hearing on March 29 in a Delaware court.

In the filing, FTX argued that its remaining employees and contractors possess institutional knowledge and unique, specialized skillsets that would be difficult to replace and are critical to the company’s objectives in its ongoing bankruptcy proceedings. FTX is facing a “massive shortfall” as it attempts to return funds to creditors, and the proposed bonus program is aimed at ensuring that the company can wind up its affairs effectively.

Under the plan, bonuses ranging from 17% to 94% of salary will be offered to staff with key skills and knowledge, including proficiency in programming languages such as Python, Rust, and Flutter. The overall package is capped at $4,027,204, and no bonuses will be paid to directors or officers of the company, founder Sam Bankman-Fried and his family, or any staff believed to be involved in wrongdoing.

FTX’s proposal comes after a New Jersey judge approved a $10 million staff retention program for bankrupt crypto company BlockFi in January. The move highlights the growing competition for talent in the crypto industry, as companies seek to retain key employees amid intense market volatility and regulatory scrutiny.

FTX’s CEO has previously criticized the company’s poor record-keeping practices, and the proposed bonus program appears to be part of a broader effort to shore up the company’s operations and strengthen its position in the market. The March 29 hearing will provide an opportunity for FTX to make its case for the bonus program and demonstrate that it is taking proactive steps to address its financial challenges and position itself for long-term success.

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