24 Hour Fitness Bonus Plan ‘Excessive,’ Bankruptcy Watchdog Says

A proposal from 24 Hour Fitness Worldwide Inc. to pay a total $8.8 million in bonuses to 22 senior managers is “excessive and unreasonable,” a federal bankruptcy watchdog says.

The bankrupt health club operator hasn’t proven that the performance metrics for the senior managers to receive the awards will actually incentivize them, the U.S. Trustee’s Office, a Justice Department agency that oversees bankruptcy proceedings, said in a filing Tuesday with the U.S. Bankruptcy Court for the District of Delaware.

In addition to the $8.8 million key employee incentive program (KEIP), the company also asked for up to $6.15 million for ...