Genesis Healthcare’s Executive Bonus Plan Opposed by DOJ Unit

Nursing home operator Genesis Healthcare Inc. lacks justification to make annual incentive payments to its top executives and should do more to prove the usefulness of a $1.4 million bankruptcy bonus package, the Justice Department said.

Genesis needs to provide more evidence that its officers and directors are doing more than their standard duties before the US Bankruptcy Court for the Northern District of Texas can authorize employee bonuses, the US Trustee’s office said in a March 13 filing.

The company’s top executives haven’t yet shown that closing on a roughly $1 billion bankruptcy asset sale requires them to go ...