Enhanced Authority Could Strengthen Oversight of Executive Bonuses Awarded Before a Bankruptcy Filing

Some companies made headlines in 2020 for paying their executives large bonuses while undergoing Chapter 11 bankruptcy. While the Bankruptcy Code restricts executive retention bonuses during bankruptcy, our review of FY 2020 data showed that some debtors may be working around the Code's restrictions by paying these bonuses prior to filing.

We recommended that Congress amend the Code to bring pre-bankruptcy bonuses under court oversight and specify factors the court should consider before approving them. READ MORE

Higher salaries and signing bonuses make it a good time to be a new employee

Early last year, Nate Tharp’s boss asked him to sit in on interviews with some job candidates.  

Tharp, who is based in Los Angeles, had been the only web designer on his team for five years. The entertainment company where he was working was in the market for another him.

“They were going to report to the same person that I report to, the same manager. Same title as me, and going to be expected to perform more or less the same work,” Tharp said. READ MORE