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The goal is to keep the existing staff to wind down the business. 1. If the bonus was tied to "getting out of bankruptcy", the easiest move for an executive wo
by itake 8y ago
The goal is to keep the existing staff to wind down the business.
1. If the bonus was tied to "getting out of bankruptcy", the easiest move for an executive would be to quit and work for a non-bankrupt company.
2. It is in addition to their regular salary in order to keep them through the bankruptcy.
- AlexandrB 8y ago> 1. If the bonus was tied to "getting out of bankruptcy", the easiest move for an executive would be to quit and work for a non-bankrupt company. This is also fucked up. In many less-well-paying jobs, fucking up and getting fired can make finding another job in the field much harder. Meanwhile, precipitating a very public bankruptcy doesn’t make you unemployable as an executive? Seems like other posters here are correct. The “risk” taken by C-level executives is actually quite low and does not justify their pay.
- bb88 8y agoYeah, I'm not sure. I do however have some observations. 1. The amount of personal runway that a c-level exec has is usually much much longer than the average sales clerk working on the floor of Sears. 2. Rewards are typically given for achievements which are aligned to company goals. The number one goal for the company is to exit bankruptcy. I don't know if the $25 million in bonuses are aligned with the company goals. 3. An executive that can get a company out of bankruptcy seems like he/she would be a better executive than one that wanted pay up front just to stick around.