The increasing use of pre|bankruptcy executive retention bonuses

USTP Prevails at Trial on Objection to Chapter 11 Debtors ...

The Justice Department's US Trustee Program (USTP) recently prevented the payment of bonuses to an executive of three small businesses that had stopped ...

Bankruptcy Compensation Back In Focus - Equilar

Given the negative impact of bankruptcies on incentive pay, most employees find themselves with worthless equity and bonuses unlikely to pay out ...

Big Lots offers $5.2M in retention bonuses to 4 executives | Retail Dive

The company's board of directors on Aug. 12 approved one-time cash retention awards totaling about $5.2 million for the executive officers, ...

These Companies Gave Their C.E.O.s Millions, Just Before Bankruptcy

Could lawmakers do anything about these bonuses? ... This is not the first time that executive pay at troubled companies has prompted an outcry.

BAPCPA's Treatment of KERPs: A Prime Example of Why Leaving It ...

BAPCPA restricts bankruptcy court approval of retention bonuses (payments to induce certain employees to stay with the debtor) under Section 503(c)(1) of the ...

Legislative Update - Sheppard Mullin

Although there is no restriction prohibiting bankruptcy debtors from paying retention bonuses to executives prior to a bankruptcy filing, § 503 ...

Key Employee Retention Plans, Executive Compensation, and ...

... CEO used the bankruptcy laws to take pay, bonuses and stock equaling over 1000 times” her compensation and received a bonus of “125% of his annual salary.

FEI Daily – The Push and Pull of Executive Bonuses and Bankruptcy

The retention of key executives is of paramount importance during this extraordinary period. But the real question is, what types of bonuses ...

Regulating Bankruptcy Bonuses and Protecting Workers in the Age ...

Through expanding the scope of executive compensation subject to restrictions, PERBB may more effectively reduce management bonuses paid in ...

Approving Employee Retention and Severance Programs Judicial ...

executives); Davis, supra note 2 (discussing argument debtor companies use to support retention bonuses); Speedo Maker Asks Bankruptcy Judge to Approve Bonuses, ...

Companies filing for bankruptcy use loophole to give CEOs huge ...

Before filing for bankruptcy protection, many companies give out huge bonuses to executives to help keep them around.

An Introduction to the World of Bankruptcy Compensation

During our review of the companies in our bankruptcy database, we focused on compensation plans used to retain and incentivize executives.

Bankruptcy Pay: Will 'Stay' Bonuses Go? - CFO.com

The new bankruptcy law, passed last October, makes it harder for companies working through a Chapter 11 reorganization to award executives retention bonuses.

The Credit Report | Thompson Coburn LLP

Credit Report · Payday before mayday: The increasing use of pre-bankruptcy executive retention David Farrell June 17, 2020 · Health care provider agreements ...

Problems in the Code - Cravath, Swaine & Moore LLP

For retention bonuses, the require- ment that the insider be “essential to ... Oversight of Executive Bonuses Awarded Before a Bankruptcy Filing 26 (2021).

Regulating Bankruptcy Bonuses - Oxford Law Blogs

In 2005, the perception that wealthy executives were being rewarded for failure led Congress to ban Chapter 11 debtors from paying 'retention' ...

JCPenney gives executives bonuses ahead of deadline for possible ...

As JCPenney struggles with missed debt payments and prepares for a possible bankruptcy filing, it approved bonuses of $1 million or more to its top four ...

Neiman Marcus executives seek $10 million in bonuses during ...

Neiman Marcus' pay raise plan goes against the typical timeline major companies follow during bankruptcy plans. Usually a company will give ...

Pre-Petition Retention Awards: Important Tools or Excuses for ...

Accounting for each of these ensures a higher degree of success at retaining executives and ensuring creditors, the UST, and other constituents ...

The United States Trustee Program Enforces BAPCPA's Limitations ...

with these important new rules restricting retention payments and executive compensation in bankruptcy cases. Regardless of one's opinion on the wisdom of ...