The CEO Bankruptcy Bonus<quoted text>
If you ever held a management position (above that of say a fast food restaurant) you would know that especially at the CEO level and similar their bonuses are part of their contract. Its negotiated at the time they are hired.
Firms Sidestep Rule Limiting Rewards for Executives
.....in the past few years, some corporations have found perfectly legal ways to escape federal strictures on bonus pay during bankruptcy cases.
Companies now craft "incentive" plansrewards that put their compensation programs outside the 2005 law's purview. These plans pay executives if they hit certain performance targets, including exiting bankruptcy protection quickly.
The Justice Department often objects to these plans, as do labor unions angered by the juxtaposition of bonuses for executives with cuts to rank-and-file jobs and benefits.