How CEO’s Are Making Billions by Making Their Own Companies Go Bankrupt

This is the company of Whiting Petroleum. It is a hydrocarbon exploration company that was founded in Denver, Colorado in 1980. And over the last 40 years, the company has made its money through oil production, oil exploration, and real estate as well.
From the year 2005 up until the year 2015, the company was extremely successful as it made billions of dollars in profits before going through some financial troubles in 2015, and finally getting back on its financial feet in 2018.
But then something changed. When the Saudi-Russian Oil war started earlier this year, and when the lockdowns significantly cut global oil demand.... oil prices fell across the world, which in turn has made many large oil companies creep towards the brink of bankruptcy.
And because of this, the Whiting Petroleum company recently announced a 3 billion dollar loss thus far in 2020.
This 5 month downturn, combined with billions of dollars in debt that they have compiled over the years, has forced the company to declare chapter 11 bankruptcy.
Now chapter 11 bankruptcy is quite complex, but to summarize it generally involves courts, and banks renegotiating the terms of the companies debts. It may also involve forcing the company to layoff a large portion of its workforce, and/or selling off any assets to help the company survive.
Now you would expect that when a company goes bankrupt and might be forced to layoff many of its employees that make between $50,000 and $100,000 a year... that the company would pinch every penny in order to help keep the company alive. That way they could try to avoid essentially being bailed out by the banks and the public taxpayers.
But in the case of Whiting, The exact opposite thing happened. Because Its top executives were given bonuses of just under $3 million dollars each, right before the company declared bankruptcy.
Now, I am not someone who cares how much money someone makes. If executives deserve to make hundreds of millions of dollars a year, then thats fine by me. But when your company is on the brink of insolvency and is about to be bailed out by the banks and the government... AND when potentially over 100 of your employees are at risk of being laid off... then you probably shouldn’t be giving out millions of dollars in bonuses to the top executives. That money should be going towards things that could help keep the company alive.
Now, the counter argument is that companies want to try their best to keep the executives that know how to run the company. Because the alternative option which is, hiring new executives, could hurt the company, and prevent it from getting out of its poor economic situation in the shortest amount of time.
And the reason why they give out these bonuses right before the company goes bankrupt is because once bankruptcy is declared, the courts have more say into how much compensation an executive can receive, or if they should receive anything.
Essentially these bonuses are a way to circumvent bankruptcy laws, and prevent the company from losing its executives who in many cases were a part of the leadership that lead to the companies bankruptcy.
But the trouble is...is that this is just one example of companies that are going bankrupt while trying to hand out millions of dollars to their top executives right before declaring bankruptcy.
Extraction Oil and Gas for example, is dishing out just under $7 million dollars to its executives this month. Chesapeeke energy dished out $25 million. California resources restructured its compensation for its ceo, so he would receive double his annual salary and bonuses if he were to be let go.By the way he made 10.5 million last year alone.
And these examples of millions of dollars in bonuses being given out to executives at failing oil companies, don’t just apply to oil companies.
Macy’s rolled out $9 million to a handful of executives, despite laying off 3,900 employees. Neiman marcus who recently filed bankruptcy, wants to dish out $10 million to its top execs. JCpenney dished out $10 million dollars in bonuses, with half of that going to the CEO. And in fact, out of 45 of the largest companies that recently declared bankruptcy, roughly two-thirds of them paid out millions in additional executive bonuses within 6 months of their bankruptcy filing date.
Transcript too long. End.
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[@JackChappleShow]

Hey everyone, this one is a little different and tackles some issues that are similar to what happened during the financial crisis of 2008. Let me know in the comments what you guys think! Also I love all 335k of you. I am astounded about how many of you enjoy my content

[@BhargavLakhlani]

Your content, presentation style, and to the point agenda is the reason why I wait for your video every week. Amazing.

[@DMalenfant1]

4:50, Robert Nagasaki said that the corporations decide what laws are written which is why they are the least taxed.

[@TOPTALENTREVIEW]

*JACK, WHAT WOULD HAPPEN IF THERE WAS A TAXPAYER REVOLT & PEOPLE REFUSED TO PAY TAXES ?*

[@ivarbaratheon264]

Informative video. Subscribed

[@dowskivisionmagicaloracle8593]

"There isn't enough money to go around" .... they're literally printing it, bruh.

[@truthhunter3538]

CEO’s doing this is like insider trading if they knew that they were going to declare bankruptcy and still got the bonus they should have to pay it back or go to prison or both!

[@par2go737]

Not gonna happen as long as American corrupted culture is in control!

[@gmarefan]

Straight up fraud.

[@Rethanos]

USA Socialism for the rich: Privatization of profits, socialization of losses.

[@ProfessorSauvaje]

wow, so on point

[@christiankalbfleisch7606]

Totally, when a company’s stock does amazing there’s some sort of investigation because apparently people think there is some sort of criminal activity. People should get rewarded for running their companies well.

[@Ash2theB]

It’s called fascism or Oligarchy simply.

[@rickdfw5005]

Yep. Pretty much how it works here. Sad isn't it.

[@FHL-Devils]

Yet it's the ignorant masses who demand the free market above all else - even when there's nothing 'free' about it.

[@2070paradigmshift]

If we're expected to have six months of emergency savings, so should all of the larger corporations

[@u.inverse]

Half of Americans don’t even have more than $400 to their name

[@par2go737]

What is demanded of everyone who's a working bloke not the same as biggy co's.

[@serrahighsfinest]

@@par2go737 But big companies get to file taxes as individuals 🤦‍♂️ the system is definitely rigged against the worker.

[@Jackrobert28]

Failure by corporate executives gives them profits. Crazy world

[@alponselrik]

the rich get richer the poor get poorer

[@par2go737]

Only seems crazy to envious jealous individuals who can't join their shenanigans

[@doqille]

@@par2go737 blame person for decency?

[@sakrist91]

Don't forget every member of Congress voted for CARES. Most members of Congress also own stock in these companies.

[@davemay7561]

Hey Jack... keep up the good work. 1) more often than not, Govt knew these loopholes wud exist and probably went along with the PPP bailouts for their 'buddies' anyways 2)If as a company you pay out disproportionate amounts of bonuses (more than 30% of total wage bill/operating budget) less than 6 months before filing for bankruptcy then you receive no mercy/assistance from the state. NONE!!!!

[@abcdefg91111]

"go bankrupt" "get money" Got it

[@justincase2830]

Don't forget to exercise your cheap options on the company stock and cash those out also.

[@onh1137]

@@justincase2830 nice one

[@onh1137]

I just feel bad for the blinded employees who depends on jobs forgetting investments.

[@Herbayse]

socialize losses privatize profits

[@justincase2830]

@@onh1137 Thank you Oliver.

[@gettingslim186]

this is sick....

[@garygranato9164]

great vid jack ps- normal people call it *theft*

[@par2go737]

Most people wish they had the chance to emulate same thievery for themselves

[@BensonGitau]

I just saw the title and I was like, duh! I would do the same under the current crony capitalism. Real capitalism can’t allow stuff like this to happen. Nowadays you get punished for running a company well and get rewarded for being reckless

[@Drewboooo]

Finally someone who understands

[@justincase2830]

This has been going on for a number of years.

[@MrArthoz]

Well in the past when companies go bankrupt it's because they have zero cash so nobody gets any pay. That is real capitalism... running out of funds and no hard assets equal to bankruptcy. Now with bailouts, overdraft and credits... I'd say it's really a scam. Even the Church of Scientology found loophole to abuse government support... The fault lies with the government. You know a country with absolute practice of crony capitalism? Communist China. The entire economy there is a Ponzi scheme to lure and cheat foreign investors.

[@Smiling_mike]

MrArthoz Totally agree with you.

[@creativecatalyst777]

@@justincase2830 Try decades. Kicked into high gear in the early 1960s. Stick with JFK's famous expose' speech. It's always been this way. They haven't bothered to hide it since 1963

[@otis7847]

Any bailout by the government is bad. Let bad business reap it's reward. The airlines probably won't go away, they will just shrink, more and new airlines will come in to compete and flights would probably be enjoyable again.

[@par2go737]

Flights were not pleasurable prior to covid19 and the misery index of flighing will evolve into not flighing anywhere unless it's an absolute emergency. Fun is over!

[@JJJ115583]

yup...when the government subsidize failure, the people has to pay for it, and the industry gets more of it (failure). so the problem is the government.

[@cristianion2056]

@@JJJ115583 this time the gov is responsible for airlines fail. They should help airline

[@olyavenger4707]

I think to start investing with a small investment. I wanted to ask you if it is right to start investing small amounts in shares? For example, the guys from the Orca App say that the main thing is not quantity, but regularity, is it really so?

[@revcrussell]

1) Chapter 11 needs to go, no re-organization, just liquidation. 2) Sue the board of directors, they are approving these outrageous compensation packages and are fiducially responsible. 3) Remove the limited liability of corporations, every share owner should be responsible for an equal share of downside risk.

[@led0073]

There are lots of companies in the UK that are failing or have closed and are making large redundancies even before this Covid-19 situation what amazes me is the people at the top, the CEO and directors are on massive pay packages and as the company goes bust they all take a large bonus. The rest of the staff just lose their jobs and are throw to the wolves so to speak. Another thing normal staff have seen over i would say the last 30 years is their pay being devalued, normal staff have not seen the same wage rises that the top executives seem to have taken in the same period. I remember a director at British gas in the 90's being reported being paid £250,000 pounds per year now the same role pays £5 million pounds + performance bonuses. Regular staff have not seen much difference in their take home pay. My dad retired 10 years ago and is amazed how much less people are currently getting paid myself included, but bills and cost are rising. Wonders how I make ends meet! We have even had companies set up and close within weeks and the directors take large amounts of money out of the business without making any real money! It also is amazing that before I get my money paid all my taxes are taken but lots of companies and people at the top seem to find loop holes and pay little to no taxes . No wonder the care and social systems that are funded via taxes are at breaking point. Makes me wonder just how future society is going to operate? Certainly looks like the richer will finds ways to exploit people and the systems and the rest are going to suffer and struggle. But the problem with that is the poorer masses are likely to push back.......

[@shiloniousmonk]

Always interesting information here, thank you (also glad you lowered the music, much easier to hear you) cheers

[@vvolfflovv]

thank you for not ignoring this like so many others. i think its one of the main reasons along with the fed as to why the wealth gap is larger than ever especially in America.

[@dowskivisionmagicaloracle8593]

"There isn't enough money to go around" .... they're literally printing it, bruh.

[@imaref9551]

It loses value as more money is printed out

[@petes.5167]

Very few companies care about their employees anymore. Especially the big ones.

[@Thalifeofaboss]

You teach me so much Jack I don’t even skip the Ads just to get you as much support as possible.. everybody Like , Subscribe, and Comment. This man give Corporate Knowledge ✊🏾. Thank you

[@ccsdk]

Absolutly appalling!

[@rescuedvideos5061]

While watching this video I was shown 5-6 “ads” from financial firms and advice about executive compensation. Anyone else see this?

[@rakkis1576]

Huh. Only saw one.

[@82chayna]

I have always been an anti advocate for 1-99. I have worked my life in multinational banks and could not stop myself from standing up in tow hall meetings and say what I believed. I always believed, the successful team should be equally or moderately compensated rather the leader 99 and the team 1%. I can keep going but for now, this is enough to share my thoughts. Love your video and would like more.

[@par2go737]

Say whatever you please. It falls on deaf ears as long as the power elite in control

[@jrize3228]

Don’t forget about the board of directors! They are all compensated for supposedly being an oversight committee for public companies. If you notice, multiple CEO’s of companies also hold multiple board positions. How much are they compensated for being a board member? I would guess A TON! And they approve these bonuses. They are all scratching each others’ backs leaving the employee and taxpayers with nothing. How can one person perform board member duties if they are already running multi billion dollar companies themselves? The answer is of course not. They just gloss over reports, get paid, pay others like them, and sit on their asses getting filthy rich. Our system is so broken and yet they (the rich) managed to divide us over race and other social issues. So as we are fighting among ourselves, they are getting filthy rich off our collective backs.

[@par2go737]

The corporate mafia style hierarchy knocking off the disenchanted stockholders

[@alanh8794]

JR agree with you, but Ufortunatly what is there to replace the sysyem? the 99 % movement didnt even get global before fizzilng out, communists tried and failed in less than a century. Hope the masses get more educated then voice and sway public opinion outcry/contempt that some of the fat cats deserve.

[@par2go737]

Only a dynamic leader supported with a mass population movement quasi- revolution is the hope. Not likely nowadays. Otherwise it's further downhill !@@alanh8794

[@jrize3228]

Alan H I honestly don’t know the answer. For now, I’m hoping people just get more educated on these things just so we know. Maybe someone with political guts will pass legislation that if taxpayers’ funds are involved, that they can never act the way they act before they took taxpayer funds. Let them go bankrupt if they prefer that, and also be able to claw back bonuses up to a few years before bankruptcy. Money makes people way too greedy so we gotta our safeguards in place. I think we did have some laws after the financial crisis hit and after the Enron debacle but they’ve been weakened since.

[@jrize3228]

Par 2go that’s why they keep dumbing down the population. They’re hoping people will be too dumb to care about something so out of their depth of understanding. And it’s working. Just look at how many people are obsessed with reality tv and the faux news cult.

[@heinbertscholtz9697]

Hi Jack I love these videos, keep it up!!!!🤩🤩 just wondering where that house is 05:57?

[@ic3b3rgi23]

You’re a very good journalist man. Keep up the great work 👍🏾

[@makemoneynow5061]

This video is worth watching! More of this, please!

[@Marc_Masters]

Great stuff as usual!

[@soldierofgod7564]

Thank you 🙏 so much for sharing this with us. May God continue to bless you and your family always Amen 🙏

[@rosep8481]

Wuld it be possible to find out which corps got PPE?

[@abdichakourdiriye3333]

Useful content, thanks a lot... Sir.

[@q09876543]

I found out after the last global meltdown that a bailout is considered earnings and therefore by contract, executives are entitled to their bonuses.

[@bedskinstruckbedcovers3846]

Thank you for helping me understand other facets of the corruption that is ruining our lives. If these brilliantly criminal minded people, who make up these corporate entities used their talents with integrity we would love on a paradise and be truly free people. Too bad. They think they won't have to answer.....They will answer. Most unfortunate for them.

[@rustinroy9911]

I fly for a major airline and agree with you. When one CEO was asked about stock buybacks he said hindsight is 20/20 and they weren’t as bad as American which is a poor excuse. They shouldn’t be buying back stock when it’s high anyway and we were making record profits but management was still stonewalling the pilots’ union during negotiations. Part of the bailout agreement is we can’t do the stock buy backs for a period of time. But I think that unless the bailout is a loan, instead of a grant, and until the loan is repaid, that buybacks shouldn’t be allowed at all.

[@AgentFascinateur]

Informative and easy to follow, as always 👍🏼 I would add there are many fraudsters in the mining industry. In QC, lots of govt money gets shovelled but the returns are never there.

[@DanielLopez-sh2pp]

Where can you investigate or see which are the frauds in the industry?

[@AgentFascinateur]

@@DanielLopez-sh2pp I have it on good intell' that securities fraud guys could get mining licenses in or around Timmins without qualifying for them. More superficially, you can google and find other stuff as well. One mine in particular, if memory serves, Stornoway. Ironically, the man who obtained a license had a US conviction based on diamonds.

[@floridagirleri]

Just FYI: There were FOUR disruptions/commercials during this video. Still love these videos!

[@bevgirdner8102]

Keep up the good work

[@janaliashrafov4106]

25 dislike - executives of those bankrupted companies

[@petrock1985]

Great video!

[@ignaciocorona7567]

Great video we need a overhaul in our system bc the working are the ones who get screwed in the end.

[@markm2302]

If course these executives should get a bonus to keep them. No telling how bad someone else might do, worse than bankruptcy that is...

[@damiantaylor3338]

Bring on the revolution

[@par2go737]

Hopefully like the civil resistance and the People Power Revolutions in history

[@kofelee2358]

Thanks Jack

[@matthewabogado2834]

Why would i want to give my money to failing companys and give there bosses more of my hard earned money. Absolutely mad word.

[@donquattrocchi9472]

That is normal for all companies that go broke. ALL CEO only care about themselves.

[@istt]

No, no and need to assess stock buyback programs to determine the amount each airline should receive.

[@blancaash8807]

Jack, you really need to post more.

[@mediocrebanters]

Why is everyone surprised by this? Executive compensations are *part of the contract* and set by the corp's charter and there are *no governmental laws that sets or limits them* . There are also no laws about it when the org is predetermined to go into bankruptcy administration. With no laws, skies the limit, regardless of economic condition or corp performance.

[@clarezigner6028]

A Bonus ought to be a reward for success,when a company fails ,executive saleries may be continued,but not one penny should be paid out in Bonuses,these moneies should go toward preserving and turning the company around. Rewarding executives for failure, is incompentent and morally wrong. If anything, when a company fails,the ablities of the top executives should be closely examined and a reduction in saleries considered along with demotion or dismissal.

[@JasonCWaite]

Time to invest in oil companies

[@mediawolf1]

Great video

[@poovaneswaransupramaniam19]

Wonderful video....large corp execs should only get large bonuses if the companies are profitable....and large companies should retain some portions of their profits for possible calamaties...but alas..it is not the case

[@DynmcStudio]

That's actually an interesting proposition. What if we allow bailout money to be used to buy parts of the company where the company have the ability to buyback once they're in a better position? That way, there are public representatives in the company (think public rep in big tech companies and of course others) and the company, if they don't like having outsiders in their board, will do it's best to buyback those seats and also have access to bailout money to stay afloat during the times they need it.

[@KangBagus888]

Hi Jack... I am a fan of your video.. In 1988, Japan had a huge private bailout... Corporates had criss crossed ownership among them... The result was no imminent recession but there was no economic rebound either. Currently Japan is experiencing almost zero growth. In 1998, during asian currency crisis, IMF is against all asian goverments to do economic bailouts to all distressed corporation, by saying bailout will lead to slow death.. When it was happened in USA in 2008, the opposite was done, but wall street kept soaring. Econ growth was good, liquidity is ample, so whats different with that of Japan.. Is it due to petrodollar, or US export is good or what? Care to give your opinion..

[@wigglebot2368]

The government should be using these deflationary times to print money to pay off debts, not to fund a flawed system

[@waxeye6488]

Good report. Very sad. Max Keiser has been warning about this too.

[@aaronwongnewyork934]

We were all taught from young the principle that if you make a mistakes you have to take responsibility..Not what I see in corporation bailout esp.banks, airlines and in wall streets..where is thier responsibility? Is there no repercussion of making a mistakes..what a wonderful world to live in.

[@bicyclist2]

The whole world is upside down. I'm not surprised. Thanks.

[@nextleveljourney6612]

Pier One - We See you! Everything marked as on Sale but seems normal price still

[@natelittle3878]

Having gone through a bankruptcy decades ago, I can still remember the absolute nit-picky ways of the bankruptcy court. It boiled down to every and i mean EVERY SINGLE ASSET I owned, as to what I got to keep and what had to be sold to satisfy my debts. The powers that the large corporations have had over the past 100+ years to design the most beneficial system of rules applicable to these "human-like entities" is absolutely mind boggling. The fact that much of it happened without the average citizen knowing about it is, in my opinion, completely criminal with a draconian cherry on top. "Job creators?" Sure they are. In the sense that they want to benefit from every single employees work output. They aren't hiring for the benefit of that employee...it's all about profit. Which is built-in to a corporations fiduciary requirements. Not responsibility? No, they are legally required to make the most profit possible for their shareholders. So if the term "job creators" makes them look good or sound noble, they should also bare the "job destroyers" insignia as well. Hiring and firing for the benefit of the bottom line is about as far from noble and as close to draconian and sociopathic as it gets for this type of legal business entity.

[@Jack.333]

Good Job...wow

[@mgh62000]

Hedge funds also got PPP money. Disgusting.

[@RextheRebel]

There are two conclusions to this. Either government bailing out corporations is proof the free market would be more fair if the government didn't do that. Or... The free market would be ten times more volatile and chaotic if government wasn't involved at all and despite how corrupt this is it still is not as bad as it could be without any intervention.

[@1q3er5]

those CEO's look so happy though

[@HoUsEoFbRiX]

I say let the companies go bankrupt and close down, if they rather give out bonuses to their shitty ceos than fight to keep the actual hard working employees than best they just don't exist anymore. Any of big corporation that took a ppe loan should be forced to pay it all back with interest. And the airlines, I agree with Italy. If the people in charge are more invested in their own individual interests over that of the company than clearly they shouldn't be running a business. These billion dollar companies should have a rainy day fund that can tie them over for 6 months to a year, thats what we are all told so why is it any different for them? The small businesses are the ones that should be protected. After this is over it would be in taxpayers interest for some of these corporations to cease to exist and their would have been bail out money invested in start ups for people who have lost their jobs.

[@FirstNameLastName-okayyoutube]

Universal forbearance would address most of the issues of money that is absolutely needed. No landlord would have any debt that needs to be immediately paid or accumulated, there is still that regular maintenance cost but otherwise they don't need any more than what the bare minimum everyone else needs. And this would go for every business that gets that stupid concept of a bailout. The government should require forbearance on all debt during a state of emergency. So then government money would go towards all individuals who do not have substantial savings and a little on top of that to help sustain some economic activity. A $1,200 check every single month including to the most wealthiest people, would eliminate incentives given by all the other programs that have been going on. Including substantially higher unemployment checks. It just makes good money sense at the fair thing to do is to eliminate the largest threat which is debt payments.

[@fres903]

That is crazy stuff this world with riches

[@astutecultivator2418]

I thought I was going to see the Lamborghini bought with PPP

[@MrSupernova111]

Me too. But that was reported within the last couple of days so probably didn't make the cut due to timing.

[@laylaalder2251]

In order: No, No, and if it needs bailing out, it deserves to no longer exist .

[@GoetzimRegen]

Wisdom and processnowledge is in the middle Management. When they go, the Company loose knowledge which cant be replaced easily. Ceo and top Management have to be well connected, good Leaders, but they are now overpriced.

[@SharkEsq]

They need to reinstate the regulations prohibiting stock buybacks, which, under Ronny Reagan, was eliminated. That's just the first step. Limits on executive compensation of publicly traded companies would also go a long way. Additionally, BK trustees need to have the ability to reverse transactions beyond the 6 month window before a BK that they're currently afforded.

[@Nimagia]

I was under the impression that it was common practice to use excess revenue to buy back shares. Shares are a form of tax advantaged debt for a company after all, so the firm is just paying back its borrowed cash. It's highly inefficient for any company to keep large amounts of cash reserves as that cash is not gaining interest or being used in any meaningful way - so firms either pay debts (buy back shares) or invest in another manner such as in R&D. Maybe it's a criticism of firms and common accounting practices as a whole, rather than specifically Airlines not holding enough cash reserves.

[@darrelllingman63]

Legislation should be i place to prevent this from happening!

[@11thHrPro]

Remember, corporations are people!

[@curtiscarpenter9881]

What they should do is have the money put into building and flipping businesses based on short term goals selling it to the management.

[@Cyclops0000]

Governments need to require successful companies to bank some of their profits each year so they can survive a year or two of turbulent times without bailouts.

[@michaelcre8]

Stock buybacks need to be illegal again.

[@pyro226]

Airline bailout:. I have also said that we should outright buy airlines rather than bail them out. Our government is (or should be) more than capable of running an airline given the fact that it runs an airforce. At worst, it can scope out some private talent to ease the transition. The main issue with such is that the US government does not have a long-term budget plan and funding for important things like the post office can apparently be dictated at the whim of the president or by the demands of a minority party of congress.

[@bang4466]

Briggs & Stratton just did it too

[@domeniclocalzo9498]

I don't understand wouldn't those bonuses be the reason they're going bankrupt ? I think that's called bankruptcy for fraud

[@HistoryforThinkers]

*Down with big brother.*

[@md.chaman5203]

Any company who sell stocks / any kind of lone then no one shouldn’t have buns more than one month Salary . If they gate Government bailout the should not get any bonus.

[@ricknplano1401]

1 -- Bonuses within 2 years of bankruptcy should be available to be clawed back by courts. 2 -- No tax exempt institution should receive taxpayer relief funds.

[@TheIntJuggler]

Unfortunately corruption is too powerful.

[@psycho-analyticgamer7452]

I think most people aren't aware of this or there would be more of a public outcry. people seem to have an idea about the corruption but rarely have profit and this is sufficient proof

[@jackwebb4934]

What we have here is an MBA Program, that will probably be used at the Harvard B-School. They do "Case Studies". Each "Case" will enable, and empower students to get wealthy. Why do you think certain schools dominate business?

[@Down_with_Plutocrats]

Self rewarding by executives just before bankruptcy is similar to insider trading and should be punished as such. Corporates using the loopholes is nothing new. Considering that we are in a unprecedented situation, helping the airlines tide over is not such a bad thing. We may excuse American Airlines of buyback of their shares.

[@zackwong100]

i still dont really understand why they give bonus to executives before bankruptcy, i dont think he did a good job in explaining why. Can someone explain to me? thanks

[@scene2much]

seems to me a bonus to an executive before "rough" times out to be like "combat pay", enhanced salary for extraordinary duty. The amounts for that I leave to others. When the idea of "Retention Bonus" is raised, that is Specious. With so many companies, world wide mind you, heading for "rough times", executives leaving their companies would be playing "Musical Chairs." There would be many many executives (based on the proliferation of bonuses) chasing relatively few executive desks. My intuition is that research along this line guts the "Retention Bonus" rationale. More likely, executives, board members, wealthy investors and politicians form a class, a broad privileged class. They celebrate their mutual successes, and if you are "made" in that class, they guarantee your success. Nobody wants to see a tribal peer "go down", so the "tribe" takes care of its own.

[@christopheb9221]

we should have make the banks public in 2008. normally when you assume someone's debts you own it. i know it would only work in a dream world but there should be a public bank that is also the central bank that is not in it for profit and is part of the treasury. So no stupid loans for the treasury to the fed and full reserve banking. The treasury would increase the money supply based on some algorithm or metrics.

[@DanielLopez-sh2pp]

Maybe a completely Ai or Automated company where there are no such sleazy executives would be the best. Also using extensive background checks to get at how former exs ran companies and blacklist them from being employed at your company is the best thing. Also, making conventional business obsolete and being inventive, creative, or modern without a ton of expenses is the best way to go. In other words having a business model that is solid that has no holes and is not a rust bucket is what you need.

[@okramoffacebook1381]

1st declare your company a lemon. 2nd press for juice. 3rd make lemonade

[@Dawson2011H]

Just want to point out TARP money to Wall Street firms are loans, not free money. US treasury made upto 20% return from the loans which were pretty good return for Tax payers.

[@hannalee276]

Doesn’t make sense to reward failure to those CEOs with hefty bonuses. There should be a mechanism that make them accountable. Yes to government taking ownership to airline business or even big banks as it will payback the taxpayers money plus profits in due course. Rails, Airlines, banks like public consumption product can be nationalise if private sector fails.

[@blackmaster999]

Corruption and greed are destroying America.

[@koreanyoon]

Executives really should not be paid millions in bonuses if their companies have done poorly, and especially if filing for bankruptcy is in the works/plans! Corruption is huge! What irks me is when these companies want their investors to vote FOR compensation for the execs when they reduce or do away with completely the dividends!!!

[@Madmoody21]

How the hell do they give out money they do not have. This is sort of following the republic we live in. I truly feel that this form of representation that was needed in the past is antiquated. Share holders much like individual voters are represented buy the officers they vote in. These officers vote the bonusses for these C.E.O's. The problem is these officers do not have to make a contractual statement of exactly what they plan to vote for or against. In order for Incorporations to work properly the leading CEO's must be held responsible civilly and criminally. Otherwise eventually there will be no interest to invest in companies. Maybe we could remove property protection from all controlling officers in some way linking their Private income and property to the success of the company the are on the board of.

[@glennchartrand5411]

Chapter 11 bankruptcy means the company plans to survive. They dont want their top people going to a competitor and working against them. They dont want a VP who has detailed knowledge of the geology report on an oil field that they just spent $30,000,000 studying going to a competitor and telling that guy "drill here." You don't want your CFO going to a competitor and telling them how much your lowest price for an asset is before you sell it. You don't want your trade secrets , sales contacts and other critical information walking out the door during the bankruptcy because the judge won't let you pay them. If they leave because you can't pay them, those non-competition clauses go right out the window. Then you have the added problem of what happens during the chapter 11 bankruptcy if most of your management gets hired away during the bankruptcy. How do replace the CFO when you cant pay someone to be the CFO? How do you negotiate a settlement in court when all the people you need to do it are gone? So you pay them to stay through the chapter 11 bankruptcy. The company basically goes up to its key people and says "We're filing chapter 11, There's no guarantee you'll be paid for the next 3 years....how much will it take for you to stay with us through that?"

[@rokask]

Finally! Had to scroll through so many identical posts till I found someone who made sense! Thank you for the context :)

[@glennchartrand5411]

@@rokask Thanks. I just felt that someone should point out why this is done and why the courts allow it.

[@4plus2wj]

Jeje that's some sheeeeit right there

[@winstonsmith6204]

It'll always equal itself out. . . ALWAYS. Sooner or Later. . . But ALWAYS.

[@tamararamos8188]

This is so disgusting how corperations receive all this money and the poor are on the brink of dissaster.😭😭

[@Jason-fm4my]

I get that LLCs are legitimate businesses, but they don't seem [to] have full liability by definition. Shouldn't they be held back from "bailout loans" over partnerships and sole proprietorships?