According to a recent filing with the Securities and Exchange Commission, Briggs & Stratton opted to not make a $6.7 million interest payment and instead the board of directors voted to pay executives and other key employees more than $5 million in cash retention awards, reports the Milwaukee Journal Sentinel.
The filling also noted that the board restored base salaries of both executives and managers as of July 1 from previously reduced levels that went into effect in April.
The decision not to make the interest payment triggered a 30-day grace period before it constitutes as a default on a credit agreement, according to the report.
According to the article,
“The cash retention awards for certain executive officers and other key employees included $1.2 million for Todd Teske, chairman, president and CEO; $600,000 for Mark Schwertfeger, senior vice president and chief financial officer; $425,000 for David Rodgers, senior vice president and president of the engines and power division; $425,000 for Harold Redman, senior vice president and president of the turf and consumer products division.”
You can read the full report here.