BUSINESS
12/03/2012 03:48 pm ET | Updated Dec 04, 2012

Gregory Rayburn, Hostess Acting CEO, Won't Participate In Company-Wide Pay Cut Or Take Bonus

The acting CEO of Hostess Brands, the failed Twinkies-maker, will not take part in a company-wide pay cut.

Though he imposed an 8 percent pay cut for all Hostess workers, Gregory Rayburn's monthly $125,000 pay -- or $1.5 million a year -- will remain unchanged, a company spokesman told The Huffington Post on Monday. Rayburn is not on the Hostess payroll and therefore isn't subject to the imposed pay cut, the spokesman explained.

Hostess appointed Rayburn, founder and owner of Kobi Partners, a restructuring advisory firm, as acting CEO in March, two months after the company filed for bankruptcy a second time.

Hostess' liquidation plan was approved last month, as were $1.8 million in bonuses for executives.

The company's shutdown will cause about 18,000 people to lose their jobs.

(Hat tip: the New York Post.)

Update: An earlier version of this story quoted a Hostess spokesperson who told The Huffington Post that Rayburn is ineligible for a bonus. Hostess now says that was incorrect. Rayburn was eligible for a bonus of between $375,000 and $1.125 million, but decided to forgo the money.

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