U.S. Rep. C.A. “Dutch” Ruppersberger has added his voice in denouncing a proposal by the bankrupt owner of the Sparrows Point steel mill to pay $20 million in bonuses to key managers.

“The fact that RG Steel executives have requested bonuses worth up to $2 million each while the company is laying off thousands of hard-working men and women at Sparrows Point is absolutely outrageous,” Ruppersberger, whose 2d Congressional district covers the steel mill and eastern Baltimore County, said in a statement late today.

The proposal by RG Steel to pay 10 senior managers $20 million in bonuses during its ongoing bankruptcy (so long as the company is sold by the end of the year) was disclosed several days ago by U.S. Trustee Roberta DeAngelis, who is responsible for administrative oversight of the case.

DeAngelis said the proposed bonus plan “does nothing to create an incentive for higher levels of individual employee performance” and would not help the company retain customers or business because RG Steel is “focused almost entirely on . . . liquidating rather than on steelmaking.”

DeAngelis called on U.S. Bankruptcy Judge Kevin J. Carey to unseal information on which executives would be entitled to the incentive pay.

The company has asked that the names and proposed bonuses be kept secret because disclosure would compromise confidential commercial information and permit competitors to poach the executives.

14 Top Officers

Mirroring DeAngelis’ objection, Ruppersberger accused RG Steel of “trying to hide who will receive the bonuses, their job descriptions and what they earn already.”

DeAngelis goes further, saying, “The seal motion seeks to create an environment evocative of Franz Kafka’s The Trial – parties in interest are entitled to comment on and object to the bonus motion, but they are not permitted to know who the recipients are and how much each will be paid.”

In earlier court papers, RG Steel listed 14 top managers and officers.

In alphabetical order they are: Richard D. Caruso, Thomas Cera, John Goodwin, Vincent J. Goodwin, David Howard, Howard E. Japlon, Jeffrey A. Legault, George D. Lukes, Glenn Mikaloff, Jerry Nelson, David Pryzbylski, Ira Rennert, Michael C. Ryan and Mark Whalen.

Judge Carey will hold a hearing on the bonus question next week.