Proterra’s Proposed Bonuses Must Be Harder to Achieve, DOJ Says

Proterra Inc. needs to provide evidence that bonus metrics for three top executives are difficult enough to warrant potentially $4 million in incentive pay, the Justice Department’s bankruptcy watchdog said.

“For a bonus plan to be incentivizing, it should be tied to significant goals that are difficult to achieve,” the US Trustee said in an objection filed Wednesday in the US Bankruptcy Court for the District of Delaware.

Proterra, which makes electric vehicle components, earlier this month proposed an incentive program for the company’s CEO, CFO and general counsel. The executives would receive the bonus payments if a planned asset ...