Executive Compensation in Bankruptcy

Executive Compensation in Bankruptcy: Motivating Key Employees ...

During bankruptcy, retention of key employees is important. Here's a rundown of common compensation tools and an overview of their regulation.

Corporate Executives & Bonuses on the Eve of Bankruptcy

Lately, it has become standard practice for many corporations to pay executive bonuses within weeks or even days before a Chapter 11 filing.

Executive Compensation and Severance Agreements in Bankruptcy

This practice note discusses (1) employment agreements antedating a bankruptcy filing and (2) executive compensation and employee retention programs ...

A. Executive Compensation - Cravath, Swaine & Moore LLP

Section 503 (c) has indeed made it nearly impossible for a debtor to put in place executive-retention programs during the bankruptcy process. For retention ...

Executive Compensation in Bankruptcy | Practical Law - Westlaw

A Practice Note discussing the issues companies operating in Chapter 11 need to consider when designing and proposing executive compensation programs for ...

Bankruptcy: Enhanced Authority Could Strengthen Oversight of ...

Section 503(c) of the Bankruptcy Code (Code) restricts retention bonuses for executives and, to a lesser extent, executive and non-executive ...

Bankrupt retail chain's CEO pay package threatens its future

Under the CEO's compensation agreement, Stein receives a $300,000 per month consulting fee and a $20 million "success fee" on emergence from ...

Paying CEOs in Bankruptcy: Executive Compensation When Agency ...

Conventional wisdom suggests that high agency costs explain the (excessive) amounts and (inefficient) forms of CEO compensation. This paper offers a simple ...

In Bankruptcies Triggered by COVID, Retention is Key for Executive ...

Executive retention awards in bankruptcy situations today have a unique design: they are paid before the bankruptcy filing and are subject to clawback ...

The Push and Pull of Executive Bonuses and Bankruptcy - FEI

Companies often pay bonuses before filing for bankruptcy due to the legal constraints on how executive compensation may be paid once the company is in ...

Recent lessons on management compensation at various stages of ...

For instance, under the current regime, a company cannot pay managers retention bonuses unless it proves to a bankruptcy court that the managers both provide ...

An Introduction to the World of Bankruptcy Compensation

Key Employee Retention Plans (KERPs) ... To incentivize “non-insider” employees to remain with the company during a bankruptcy period, “stay” ...

CEO Considerations Before Filing Chapter 11 - Bloomberg Law

Normally, a debtor cannot pay pre-petition debt, but the Bankruptcy Code excepts payment of employee wages. The debtor company will need to seek relief to pay ...

The increasing use of pre-bankruptcy executive retention bonuses

Pursuant to these KERPs, Chapter 11 debtors would pay large retention bonuses to certain members of their senior management on the condition ...

Executive Compensation - SGR Law

Since the recent high-profile bankruptcies of Enron, WorldCom and other companies, the public has been bombarded by stories of corporate executives reaping ...

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 ...

On eve of bankruptcy, U.S. firms shower execs with bonuses - Reuters

Whiting Petroleum Corp bestowed $14.6 million in extra compensation to executives days before its April 1 bankruptcy. Shale pioneer Chesapeake ...

Yellow paid executives $4.6 million in bonuses for bankruptcy wind ...

Yellow Corp. doled out millions of dollars in bonuses to executives so they wouldn't leave the trucking firm during its chaotic unraveling.

GAO-21-104617, BANKRUPTCY - Government Accountability Office

For instance, to pay an executive a retention bonus, the Code requires the debtor to meet three requirements, including that the executive has ...

Executive Compensation and Severance Agreements in Bankruptcy

This practice note discusses (1) employment agreements antedating a bankruptcy filing and (2) executive compensation and employee retention ...