From an ethical perspective, is it moral for a company facing bankruptcy to pay out millions in bonuses to departing executives while declining to pay any form of severance for hourly employees?
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Corporate bankruptcy
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Corporate bankruptcy
"I am not angered that the Moral Majority boys campaign against abortion. I am angry when the same men who say, "Save OUR children" bellow "Build more and bigger bombers." That's right! Blast the children in other nations into eternity, or limbless misery as they lay crippled from "OUR" bombers! This does not jell." - Leonard RavenhillTags: None
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I once heard such an executive say that if they weren't paid thusly, then all the executives would abandon the company en masse creating an even bigger mess than bankruptcy. I suppose we could try keeping executives who run companies into the ground a bit more accountable."Down in the lowlands, where the water is deep,
Hear my cry, hear my shout,
Save me, save me"
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Originally posted by guacamole View PostI once heard such an executive say that if they weren't paid thusly, then all the executives would abandon the company en masse creating an even bigger mess than bankruptcy. I suppose we could try keeping executives who run companies into the ground a bit more accountable.
If worker severance bonuses are an issue they should simply require corporations to actually have the funds they owe their employees at all times, possibly held by a different dedicated legal entity."As for my people, children are their oppressors, and women rule over them. O my people, they which lead thee cause thee to err, and destroy the way of thy paths." Isaiah 3:12
There is no such thing as innocence, only degrees of guilt.
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Originally posted by Darth Executor View PostOften executives come in to try and save a dying company and make sure they have solid contracts before tying their name to a sinking ship that may well be impossible to save.
If worker severance bonuses are an issue they should simply require corporations to actually have the funds they owe their employees at all times, possibly held by a different dedicated legal entity.The first to state his case seems right until another comes and cross-examines him.
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Originally posted by KingsGambit View PostFrom an ethical perspective, is it moral for a company facing bankruptcy to pay out millions in bonuses to departing executives while declining to pay any form of severance for hourly employees?
And, you kinda use "ethical" and "moral" in the same.....The first to state his case seems right until another comes and cross-examines him.
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If companies have to do escrows for severance pay, as a general business practice, companies would have to hire fewer people and would have a harder time staying functional. in effect, non-BK businesses would be harder to start and operate in order to be prepared for bankruptcy.
It may be possible to regain severance pay through an appeal to the BK court. Also, late payments to executives may be called back -- which I can safely say since it is April 1.
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Originally posted by mikewhitney View PostIf companies have to do escrows for severance pay, as a general business practice....The first to state his case seems right until another comes and cross-examines him.
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http://theintercept.com/2019/03/25/g...severance-scam
CHUNG WAS RECRUITED to Gymboree five years ago by her former boss at Old Navy, where she was the vice president of kids and baby clothing design. She was told that she would have the run of an entire brand, the low-price Crazy 8. “It was their only brand that was relevant,” Chung says. She took the job.
At the time, Gymboree was under the control of Bain Capital, Mitt Romney’s old private-equity firm. The private-equity business model involves engaging in buyouts with borrowed money and putting that mountain of debt on the company it purchases, all the while extracting profits from the company through management fees. Few companies, particularly in the high-risk retail sector, can deal with such a debt burden — it makes it difficult to invest in stores, personnel, or better products.
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