Welcome Guest
Sign In | Register

Not really. A lot of those payments are simply to retain

Posted on: July 27, 2020 at 11:56:59 CT
*M* KC
Posts:
30936
Member For:
23.53 yrs
Level:
User
M.O.B. Votes:
0
talented people, getting them to stay on board a ship that is about to sink. If those people leave, the company's condition going into bankruptcy will be even worse.

Additionally, if the payments are out of line with fair value, and made within 90 days of filing, the creditors can attack them as preference payments and potentially claw the money back into the bankruptcy estate for the benefit of creditors.

Retention bonuses for companies that are in dire straits are very common. And sometimes, the fact that the key people stay can help keep the company out of bankruptcy entirely.

You should actually approve of this, as it is highly market-based. As the company declines, the FMV of the key employees increases, and the company has to pay them FMV in order to keep them. Mises and Hayek would approve of these payments.
Report Message

Please explain why this message is being reported.

REPLY

Handle:
Password:
Subject:

MESSAGE THREAD

Bankruptcy bonuses - ashtray UF - 7/27 11:06:26
     Not really. A lot of those payments are simply to retain - *M* KC - 7/27 11:56:59
          I'm not making an opinion of whether I support it or not - ashtray UF - 7/27 12:00:33
               Executives are harder to find and retain than line workers - Spanky KU - 7/27 12:16:40
                    ok? (nm) - ashtray UF - 7/27 12:29:09
                         So companies work hard to retain talented executives - Spanky KU - 7/27 12:37:45
                              ok? (nm) - ashtray UF - 7/27 12:40:47
                                   Wrong board for you, apparently. Maybe Nick can create - Spanky KU - 7/27 12:52:09
                                        no, you're contributions are just irrelevant - ashtray UF - 7/27 13:26:28
     who is it rigged for and against? all gvmt favors the - 90Tiger STL - 7/27 11:25:59
          nobody is whining here except for you - ashtray UF - 7/27 11:31:04
               seems you're empathizing with millions whining. So you're - 90Tiger STL - 7/27 11:53:17
                    I think you need to change your kotex - ashtray UF - 7/27 11:58:33
     If the bankruptcy was due to Covid they may not have had the - TigerFan92 STL - 7/27 11:24:53
          fair point (nm) - ashtray UF - 7/27 11:31:35
     It's not rigged - mizzouSECedes STL - 7/27 11:12:04
          I would not say it is rigged - 4TigersinMichigan MU - 7/27 11:13:17
          you're missing the point - ashtray UF - 7/27 11:13:16
               Anyone can work hard and get promoted - mizzouSECedes STL - 7/27 11:14:57
                    still missing the point - ashtray UF - 7/27 11:22:24
     I don't have a single problem with this - Ragnar Danneskjold MU - 7/27 11:11:02
          I agree with that - 4TigersinMichigan MU - 7/27 11:13:57
          I also agree with this - Gavin Citrus MU - 7/27 11:12:33
     The system is rigged - Gavin Citrus MU - 7/27 11:10:05
     Bankruptcy laws need to be fixed to be sure - 4TigersinMichigan MU - 7/27 11:09:10




©2024 Fanboards L.L.C. — Our Privacy Policy   About Tigerboard