Friday, January 27, 2012

You've Gotta Be Kidding....The CEO Bankruptcy Bonus

On the way to bankruptcy court, Lear Corp., a car-parts supplier, closed 28 factories, cut more than 20,000 jobs and wiped out shareholders. Still, the Wall St Journal reports, Lear sought $20.6 million in bonuses for key executives and other employees, including an eventual payout of more than $5.4 million for then-Chief Executive Robert Rossiter.

The Justice Department objected, arguing that the package violated a federal law intended to rein in pay for executives at companies that harmed investors and cut jobs before and during the bankruptcy process.

But a judge approved the payouts, accepting the company's arguments that the executives would deserve them if….

Read more at http://online.wsj.com/article/SB10001424053111903703604576584480750545602.html?mod=WSJ_business_LeadStoryCollection

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