3 ms·

Stuff like this always gets tons of press but exec bonuses during a bankruptcy often are logical. Many execs will see bankruptcy coming and will jump ship. Ba

Stuff like this always gets tons of press but exec bonuses during a bankruptcy often are logical. Many execs will see bankruptcy coming and will jump ship. Bankruptcy can be complicated to navigate and there is often still significant value in the company. It really helps to have at least a few people that understand the business and the books. A significant proportion of typical exec comp is equity/options which is/has likely gone to zero, so a cash bonus is often used as a retainer fee for key execs.

pelliphant 6y ago
That.. actually makes sense.
GreeniFi 6y ago
As a response to my original post, I believe you are (the more) correct to the extent execs need to receive a risk premium for helping save the business. I query whether the execs who (likely not always) oversaw the transition to bankruptcy are the ones to salvage value - but their institutional knowledge is also surely needed and you need to keep a few around.