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Drudge Retort: The Other Side of the News
Monday, October 26, 2020

Since the pandemic took hold in March, at least 18 large companies have rewarded executives with six- and seven-figure payouts before asking bankruptcy courts to shield them from landlords, suppliers and other creditors while they restructured, The Post review found. They collectively meted out more than $135 million, documents show, while listing $79 billion in debts.

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Labor experts and bankruptcy attorneys say the payouts are particularly egregious " and unjustifiable " during an economic crisis, and were timed to bypass a 2005 law passed specifically to prevent executives from prospering while their companies flailed.

"These are bonuses that unfairly enrich the very same corporate managers that led the company into bankruptcy," said Brandon Rees, a deputy director at the AFL-CIO, the nation's largest coalition of labor unions. "That unfairness is compounded by the fact that we've just experienced the worst unemployment rate since the Great Depression."

The retention bonuses, which range from $600,000 at the parent company of retailer New York & Co. to the $25 million awarded to executives at Chesapeake Energy, illustrate how the pandemic recession is exacerbating economic inequality in the starkest terms: Those same companies laid off tens of thousands of workers, the majority earning less than $29,000 a year.

On another thread today a poster made the case that they agree with people being thrown into jail if behind on their rent under state criminal charges. I wonder if the same poster would agree with me in wanting to see any executive of a company taking a bonus when that same company files for bankruptcy relief within 12 months of such dispersals charged with a felony for criminal fraud against said company's stockholders and debtors - unless that amount is returned to the corporation within 30 days of said filing, with interest?

Sauce for the goose and all that rot....

#1 | Posted by tonyroma at 2020-10-26 06:05 PM | Reply

Remember the huge Trump tax cut that was given to corporations so that those corporations could invest in the company and workers of the company (e.g., increase wages)?

From the beginning, the money from that tax cut was channeled to the wealthy shareholders via dividends and other means to increase the stock price (e.g., stock buy-backs).

Now, the transfer of the money to the wealthy is becoming even more overt.

#2 | Posted by LampLighter at 2020-10-27 10:23 AM | Reply

They're in a higher class of being than we are. Of course they deserve bonuses to keep their status quo.

#3 | Posted by madscientist at 2020-10-27 03:28 PM | Reply

Trump's economy.

#4 | Posted by snoofy at 2020-10-27 10:41 PM | Reply

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