The issue is the executives keep the bonus even if fired in bankruptcy. Further, because the money has technically already been paid out, the bankruptcy court can’t claw it back. It’s therefore not pay for work done.
At best executives get leverage in their job search and a fallback option should their job search fail to find better options. So, it’s not even an effective means to maintain someone actually talented.
At best executives get leverage in their job search and a fallback option should their job search fail to find better options. So, it’s not even an effective means to maintain someone actually talented.