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New Century: Thank Goodness the Execs Are Still Being Paid
By: PAUL JACKSON
May 8, 2007
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In a decision I still can’t quite wrap my little pea brain around, apparently the bankruptcy court presiding over New Century’s collapse decided yesterday that it would allow the company to pay out $3.2 million in bonuses to 116 key executives at the defunct company. That’s according to this story from the LA Times.
Assuming every executive is equally compensated — which of course isn’t the case — the bonuses work out to $27,586 per executive. Not too shabby, especially when you’re working for a company that isn’t in business any more.
The company couldn’t find a buyer and gave 2,000 employees their walking papers last week, yet 116 execs at the company earn bonuses?
I can’t be the only one that doesn’t get this. How could the bankruptcy judge possibly have been hoodwinked into this one?
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