Summary:

Cash-strapped Midway Games’ plan to pay out more than $3.75 million in bonuses got smacked down by both the Feds overseeing its Chapter 11 b…

imageCash-strapped Midway Games’ plan to pay out more than $3.75 million in bonuses got smacked down by both the Feds overseeing its Chapter 11 bankruptcy proceedings, and its roster of unpaid creditors — so the Mortal Kombat publisher revised its “key employee incentive plan” and refiled it today (PDF, via Epic Systems). Among the differences:

CEO Matt Booty is no longer eligible for a cash bonus: Though the docket refers to “key members of management and senior staff,” Booty has been excluded specifically. Geoffrey Mogilner, the company’s director of corporate communications, told paidContent that prospective bonus recipients were actually “rank-and-file” staff like accountants and developers, not executives.

Payments for the Wheelman deal are scrapped: The problem was that both Midway and some employees were already paid for selling most of the rights to the upcoming Vin Diesel game. There’s also new wording to address potential bonuses for selling various “assets” — not necessarily Mortal Kombat.

Payments are variable: There’s no fixed amount for any specific milestone; instead, the bonus will be calculated based on how much extra work the employee is required to do and how much the company benefits from the milestone he/she accomplishes (either successfully selling more of the company’s assets, or submitting an approved restructuring plan). And if the employee quits before the milestone is achieved, that person forfeits the bonus.

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