Quote:
Originally Posted by Resurrection
So where is the obligation to give giant bonuses to the people in charge of a failing company?
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No obligation exists normally. I haven't looked to see if it's the case with Sears but it's not uncommon to have a retention bonus for key employees or management that are needed to stay throughout the CCAA process. It has to be approved by the court. The justification that's presented to the court is that, without the bonus those people would quit to go elsewhere and you need to give them a bonus to entice them to stay. In my view (and this is my area of practice) it's often oversold.