Outraged by Midway
It appears that outrageous behavior by executives for bankrupt companies have infected the gaming industry. Midway, makers of the Mortal Kombat fighting game series, filed for bankruptcy on February 13 and have racked over $281 million in debt. A complete liquidation of the company assets is currently being conducted with games like Wheelman and the Mortal Kombat franchise up for grabs to the highest bidder.
However, court documents revealed that 29 executives, management and key non-company insiders of the company are eligible for over $3.75 million in bonuses if they meet certain company objectives. Presumably, this means the sale of their intellectual property, the only assets available to the company. It also means screwing over former employees out of earned paid time off (PTO).
In a letter received by Kotaku, former non-management employees received a letter indicating that their PTO, which was assured to them in a previous letter, is now being rescinded. Former employees are now just additional claimants to the bankrupt company, which essentially means that they may never receive money due them, and must compete with banks and other financial institutions to get a piece of the ever dwindling Midway pie. Meanwhile, upper management is still guaranteed distribution of $3.75 million in bonus. Presumably, this distribution occurs before claims are settled.
This is an outrageous act of greed and cowardice. The economy is bad, and a developer or an animator will need the payout check for accrued vacation and sick leave far more than an executive or upper level manager will need a bonus. I guess when it comes to morals, let alone common human deceny, some game company executives check theirs at the door.
The rogue’s gallery:
The current executive team at Midway:
- Matthew V Booty - CEO and President
- Deborah K. Futon - Sr. VP, Secretary and General Counsel
- Miguel Irribarren - Sr. VP of Publishing
- Ryan G. O’Desky - CFO and Treasurer
- Martin Spiess - Exec VP, International, Midway Games Limited
Board members:
- Matthew V. Booty - Chairman
- William C. Bartholomay - Board member
- Joseph A. Califano, Jr. - Board member
- Robert N. Waxman - Board member
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Oh well… It was my 1st fighting game back then (UMK3 actually). I hadn’t even played MK:A yet (-_-) I’m more into 2D anime fighting games though.