Should Bankruptcies Negate Bonuses?

Should bankruptcies negate bonuses?

A bankruptcy watchdog says top Neiman Marcus executives need to prove they boosted the luxury retailers’ earnings before receiving bonuses of up to $10 million. Neiman Marcus filed for bankruptcy protection back in May, and according to a Justice Department lawyer, “pay-to-stay” bonuses can’t be offered just as incentives for top executives to remain with the company. Based on a Bloomberg analysis of regulatory filings, 19 of the more than 100 major companies that have declared bankruptcy since the start of the pandemic have committed to paying a total of $131 million in bonuses.

Comments are closed.