Rite Aid Creditors Blast Bankruptcy Plan’s $20 Million for CEO

Rite Aid Corp. is facing pushback from junior creditors to its proposal to pay its new CEO $20 million under its bankruptcy exit plan.

The bankrupt pharmacy chain’s CEO employment agreement is part of its strategy to reorganize in bankruptcy, which it filed in October amid widespread litigation alleging its opioid sales helped fuel a national epidemic. Rite Aid has proposed a restructuring plan that would reduce its $8 billion in debt and allow bondholders to take over the company.

Rite Aid has struck deals with the Justice Department, pharmaceutical distributor McKesson Corp, some states, and committees representing unsecured creditors, ...