Bonuses before bankruptcy: Companies doled out millions to executives before filing for Chapter 11
Abha Bhattarai, Daniela Santamarina 5 hrs ago
Bonuses before bankruptcy: Companies doled out millions to executives before filing for Chapter 11The coronavirus recession tipped dozens of troubled companies into bankruptcy, setting off a rush of store closures, furloughs and layoffs. But several major brands, including Hertz Global, J.C. Penney and Neiman Marcus, doled out millions in executive bonuses just before filing for Chapter 11 protection, according to a Washington Post analysis of regulatory filings and court documents.
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I’ve addressed this “problem” before.
Since “corporations” are a Gooferment “creation”, the Gooferment can make the ROE (rules of engagement) for them.
Soooooo, turn the IRS loose on the “corporations”.
No corporation can pay an annual salary more than the President. (It’s unseemly and crude!)
And, corporations should be able to pay ANYTHING in the form of “tiered” of equal amounts over 25 years.
My reasoning is that we want to “encourage” long term thinking.
Having seen the GM “bankruptcy” where everyone made out well EXCEPT the taxpayers and the bondholders, we need to “fix” this.
By making the Board of Directors and “executives” compensated in 25 year bonds, the entire set of incentives and motivations will be changed radically!
… … so it will never happen … …