Companies that gave bonuses to top executives before bankruptcy

Companies paid $165 million in bonuses before going bankrupt

Oct 08, 2021
388 views
0 comments
Share
Leadership &

Chuck E. Cheese, Hertz and J.C. Penney are among the many companies that paid millions of dollars in bonuses to their top executives before their corporate bankruptcy filings. Each company paid a bonus to their top executives last year before they declared Chapter 11 bankruptcy. Other companies on the list include Neiman Marcus, oil companies like Whiting Petroleum and Chesapeake Energy. The Government Accountability Office (GAO) found in a new report that all 42 companies spent billions of dollars in so-called "retention" bonuses in the days that led up to their bankruptcies. Michael Clements, GAO's financial markets director said in a GAO podcast, "These companies paid bonuses totaling $165 million anywhere from five months to as little as two days before the company filed for bankruptcy."

The awarding of retention bonuses right before filing for Chapter 11 bankruptcy shoes that the U.S. bankruptcy code needs fixing. The change would involve amending the bankruptcy code rule that Congress passed 15 years ago. The Bankruptcy Abuse Prevention and Consumer Protection Act passed in 2005 limits the debtor companies' ability to give out worker retention and executive bonuses without a bankruptcy judge's blessing. The bankruptcy rule does not however regulate what a company can or cannot do before it files for bankruptcy.

Source: CBS News

388 views
0 comments

Tags In

Discrimination

Previous days news

Oct 7 Oct 6 Oct 5 Oct 4 Oct 1

Best tech jobs in the United States : BLS data

Sep 06, 2022
859 views
0 comments
Background Checks

For several reasons, the IT sector is appealing to job seekers. ...Read more

Salaries for Californian fast food employees might rise to $22 per hour

Sep 06, 2022
716 views
0 comments
Background Checks

Despite the opposition of restaurant owners who worried it would raise customers' bills, California Governor Gavin Newsom on Monday signed a nation-leading law providing more than 500,000 fast food employees additional authority and rights. ...Read more

Workers leave as job dissatisfaction grows

Aug 17, 2022
904 views
0 comments
Background Checks

Demands for improved pay and workplace environments are coming from workers in California to New York. ...Read more

Microsoft offers graduates from African nations job prospects in the US & Canada

Aug 17, 2022
696 views
0 comments
Background Checks

New graduates from institutions in Nigeria and other African nations have been made aware of job prospects by Microsoft. ...Read more

Casper is hiring professional sleepers

Aug 10, 2022
979 views
0 comments
Background Checks

A mattress company is searching for a role where napping while working is not only acceptable but also required. 'Casper Sleepers' are being hired by Casper, a New York-based business established in 2014. ...Read more

Companies paid $165 million in bonuses before going bankrupt

Companies paid $165 million in bonuses before going bankrupt

Tags In

Others news

Category

Tags

Articles