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U.S. firms shield CEO pay as pandemic hits workers, investors

MarkMark
in Other Investing
"Sonic is one of six U.S. companies identified in a Reuters review of regulatory filings that have moved to shield their executives' compensation from the pandemic's economic fallout as they laid off or furloughed workers. The others include plush toy seller Build-A-Bear Workshop Inc ( BBW ), restaurant operator Red Robin Gourmet Burgers Inc ( RRGB ) , retailer Signet Jewelers Ltd ( SIG ) , fashion brand DKNY owner G-III Apparel Group Ltd ( GIII ) and fracking sand producer Covia Holdings Corp ( CVIA ).

Reuters found 75 other companies that disclosed they are considering changes to executive pay plans in light of the pandemic's impact on their businesses. Among them are ridesharing giant Uber Technologies Inc ( UBER ) , hotel operator Hilton Worldwide Holdings Inc ( HLT ) , carrier Delta Air Lines Inc ( DAL ), satellite radio company Sirius XM Holdings Inc ( SIRI ) and Thomson Reuters Corp ( TMSOF ), the parent company of Reuters News."


Article Here

Comments

  • johnNjohnN
    edited May 2020
    Thx Mark..America at its best...htz hertz pays 16mills to ceo/corporate team before file chapt11

    Little guys get slammed and worrying where next meals may come /find shelters for family from storms from while the big guys get golden chairs and diamonds


    https://www.google.com/amp/s/amp.cnn.com/cnn/2020/05/26/investing/hertz-bankruptcy-executive-bonuses/index.html
  • msf
    See 11 USC 547 - claw back provision of the Bankruptcy Code. It's something I pointed out when I was in a small company going bankrupt. Not as advice, but as a suggestion for the company to check with its lawyers before assuming all payments that it made before filing would "stick". There's an "ordinary course of business" exception that protects routine payments; it doesn't protect bonuses.
    Background on bankruptcy claw backs.
    [S]ome companies have elected to pay managers’ bonuses, or to raise their base salaries, before filing bankruptcy. Those payments can be made with limited oversight, as they are not subject to bankruptcy court approval. However, if a bankruptcy filing becomes necessary, those payments will receive close scrutiny from the company’s creditors and a bankruptcy court. As a legal matter, payments made to corporate insiders within one year of a bankruptcy filing may be clawed-back into the bankruptcy estate.
    https://www.kirkland.com/siteFiles/Publications/FinancierWorldwide_Sprayregen byline 2013.pdf
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