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> Hmm, I hate this concept of "bonuses" because in my experience this isn't really how things work. You're right. They're going to pay themselves the bonus reg
by 411111111111111 6y ago
> Hmm, I hate this concept of "bonuses" because in my experience this isn't really how things work.
You're right. They're going to pay themselves the bonus regardless of this debacle.
- kortilla 6y agoPlease explain to me the process by which executives decide their own bonus.
- kingaillas 6y agoThere are directors/executives that sit on compensation committees that also wind up deciding their own pay. And if you decide your own pay it isn't much of a leap to also decide bonus amounts and criteria. Here's an article from Harvard Law Review about a lawsuit over this - you might be interested in the paragraphs in the "Shareholder Waivers" section: https://corpgov.law.harvard.edu/2019/09/18/setting-directors-pay-under-delaware-law/ https://corpgov.law.harvard.edu/2019/09/18/setting-directors... Some quotes: waive a shareholder’s right to sue the directors for violating their duty of loyalty regarding setting their own pay and For directors setting their own pay, the ruling suggested that a blanket waiver etc.