Execs at bankrupt companies made $131 million in bonuses

Execs at bankrupt companies made $131 million in bonuses

Of the 100 or so major US companies that filed for bankruptcy since the COVID-19 shutdown began, 19 of them committed to paying a total of $131M in bonuses, both before and after filing. Some of these include - $10M at J.C. Penney, $25M at Chesapeake Energy, $1.5M at Hertz Global. Companies justify this, saying they need to keep management teams to help turnaround consultants repair the damage.

Kathy
Kathy
I have no idea
I have no idea 4 weeks

While the reason they gave, to keep the management from jumping ship, isn't bad, no one will believe them. In the end they are better off saying that they wanted to give them more but couldn't because of the bankruptcy.

Timothy
Timothy 4 weeks

It shows a lack of integrity and incredibly poor judgement. Those senior managers receiving bonuses should be sufficiently engaged in the success of the businesses they ran without depriving them of liquidity much needed by the company now in distress. Insolvency and restructuring sometimes becomes necessary, even during the best of times and if the management team in place are not considered capable of achieving that outcome they should not have their hand out just to help turnaround teams do what they could not. Seems many senior managers forget that the staff working at the company are wholly reliant on it to meet their living needs.

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