Cetero execs set for bonuses if buyer is found

By Gareth Macdonald

- Last updated on GMT

Cetero execs set for bonuses if buyer is found
Cetero Research executives want bonuses if they manage to find a buyer for the ailing firm according to documents filed as part of the CRO's bankruptcy case.

The US contract research organisation (CRO) filed for bankruptcy protection ​in March, some eight months after the US Food and Drug Administration (FDA) said that the firm had manipulated samples and faked documents​ at its laboratory in Houston, Texas.

Now - according to a motion​ filed with the US Bankruptcy Court District of Delaware on a few days later on March 27 - Cetero wants presiding Judge Kevin J Carey to approve bonuses for key employees set out in an incentive plan​ designed to reward those involved in finding a buyer.

Under the scheme the basic bonuses would total $1,060,000 if a buyer is found. However, on page six of the motion Cetero states that if ongoing efforts attract a takeover bid​ of $50m then the total value of the bonuses will increase to $1,310,000.

Cetero argues that as a result of its entry into Chapter 11 employees “have necessarily assumed a bigger workloa​d" and that "the greatest burden has fallen on a core group of employees that are responsible for making substantially all executive managerial and operational decisions vital to the preservation and maintenance of the going concern value of Cetero’s estates​.”

Those eligible for the takeover-based bonuses include Cetero’s CEO; its CFO; its President; and its VP of quality and compliance

Also set for bonuses are presidents of Cetero’s operations in San Antonio and Toronto, its vice presidents of biometrics, business development, business relationship management, interim president of bioanalytical services and unspecified project managers.

Cary, North Carolina-headquartered Cetero has over 1,100 employees in the US and Canada.

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