Re:On eve of bankruptcy, US firms shower executives with bon...
by kelnos on Saturday July 18, 2020 @08:50AM
(#23881074)
> As to why this is allowed, I think it's seen as a private transaction between well-informed and consenting parties, so there needs to be a compelling reason for legislation and regulation.
I mean, it's not allowed. Part of what we're talking about here is that companies are getting around laws against retention bonuses during bankruptcy by granting those bonuses a week before filing the bankruptcy papers. Society has clearly decided that we don't think this behavior should be legal, but it's hard to close all the loopholes.
I mean, it's not allowed. Part of what we're talking about here is that companies are getting around laws against retention bonuses during bankruptcy by granting those bonuses a week before filing the bankruptcy papers. Society has clearly decided that we don't think this behavior should be legal, but it's hard to close all the loopholes.