Lancaster, Pa. -- Armstrong World Industries Inc. has implemented a two-year bonus program for top managers that will cost the company $8.2 million. In papers filed last week in U.S. Bankruptcy Court in Wilmington, Del., the judge approved the Lancaster-based building products company's request to continue the retention plan. It was approved along with 17 other motions from Armstrong dealing with paying employees’ salaries, fringe benefits and payroll, school and municipal taxes, while the firm reorganizes $3.3 billion of debts under Chapter 11 bankruptcy protection.

The bonuses will cost Armstrong $4.1 million this year and $4.1 million next year. Assuming each of the 39 people get the minimum 50 percent bonus, it means the average annual bonus paid to each of them will be $105,128.

Michael D. Lockhart, chairman and chief executive officer of Armstrong Holdings Inc., the owner of Armstrong World, is not part of the retention plan. The company said it may seek court approval later for a retention arrangement with Lockhart, 51, who was paid a $5 million signing bonus in August when he joined Armstrong.

The company pays about $300,000 monthly to eligible retirees, including $93,000 a month to George A. Lorch, who preceded Lockhart as chairman and chief executive officer.