Re:How People Get Rich Now
by FireBeyond on Monday April 12, 2021 @04:16PM
(#26784593)
And when they drive it into bankruptcy, the company will still go to court to argue that these bonuses, compensation, parachutes should be paid, regardless. Win-win game. Except for the employees and shareholders.
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Re:How People Get Rich Now
by WalterBright on Monday April 12, 2021 @04:23PM
(#26784672)
Stock based compensation goes to zero in bankruptcy.
Usually somehow the execs have sold out just before the bad news, while the regular employees haven't liquidated their 401s/stock plans.
Re:How People Get Rich Now
by WinstonSmith84 on Monday April 12, 2021 @05:09PM
(#26785226)
Usually? Please ...
That's called insider trading and those who do that ends up in jail or at best have to hide in the sun for the rest of their life.
A recent example would be Intel's CEO Brian Krzanich dumping as much stock as he could after learning about Meltdown and before the news went public.
https://arstechnica.com/information-technology/2018/01/intel...
The article also cites Equifax's CEO selling before the news of their data breach went public.
And that's just the ones that are prominent enough that everybody knows about it.
Even just the routine sell off ten percent a year or whatever a financial planner would advise is something one can't do with your 401k.
There's of course legal ways to do similarly. I thought this was a good example of John Krafcik's resignation which to a certain extent meets the same aim:
Official resignation letter:
https://blog.waymo.com/2021/04/capstone-of-my-career-email-f...
"Interpreted" letter:
https://gist.github.com/ChuckM/ff5fc8c800c7fe9160483b68ec45a...
Is "hide in the sun" an idiom I'm unfamiliar with? Genuinely curious about what this means