Only because we have a system where every company - you know, controlled by execs, and a board made up of execs or former execs from other companies - tell this tale.
We have to stop pretending C-level and VP-level people are special rare unicorns that are the only people who could possibly do this very difficult work. That's bullshit.
It's a self-perpetuating club that keeps voting itself the majority of the pie and keeps telling the myth that, by golly, that's the way it has to be or they just can't keep good talent.
If the majority of companies stop showering these assholes with bonuses they'll fucking stay put and be happy to have a job like the rest of us when times are hard.
They aren't idiots paying the CO's exorbitant amounts for fun. They do it because they have no other alternative.
The shareholders aren't the bosses, they're the audience.
Because more often than not they are friends with the board and the main shareholders.
This is business. No one is gifting people their own money because of friendship.
ALL key employees needed to keep things going through the bankruptcy process are paid more.
You are under the impression that companies love throwing money at executives, but just like regular employees, companies only pay the minimum they NEED to pay them to keep them around. Why on earth would shareholders accept throwing money away to executives???? you position isn't logical.
If they were paid less to do more, they'd just quit, and operations would grind to a halt - destroying any prospect of restructuring.
The article focuses on executives, but these pay bonuses are not limited to executives.
Also remember that Stock options given to employees vest over 4 years, which means that all non-junior employees have just lost multiple years of income (this actually hits executives the hardest who's income is mostly in the form of stock options). ... so the only way to stop people from going elsewhere is to give them proportional bonuses.