Hertz paid top executives $16 million in bonuses ahead of its bankruptcy filing

[yortsed snacilbuper]

Hertz paid out millions of dollars in bonuses to its executives just before its bankruptcy -- and a month after it started laying off thousands of employees.

Retention bonuses are typical for bankrupt companies that want to prevent their management from abandoning ship. But they're always awkward: the company can't pay its employees or its debts to lenders, but it prioritizes payments to its already handsomely paid bosses.

Hertz paid a total of $16.2 million to 340 executives on May 19 as part of a plan to keep them in place while the company attempts to reorganize, the company announced in a filing with the Securities and Exchange Commission. The executives will be required to return the money should they leave Hertz on their own before March 31, 2021.

Paul Stone, who was just promoted to CEO three days before the retention bonuses were awarded, got $700,000 under the plan. Chief Financial Officer Jamere Jackson got $600,000, while Chief Marketing Officer Jodi Allen got about $190,000.

link

[benld74]

1. A typical for this type of shit, innit?

[crickets]

2. This should not be legal. Why is this legal? /rhetorical

To think I felt a little sad to see the company go. Screw 'em and good riddance.

[Celerity]

3. promoted to CEO three days before the retention bonuses were awarded, got $700,000

[Windy City Charlie]

4. Lots of companies do this

It's so wrong....the executives essentially bankrupt their own company by giving themselves bonuses. And worse yet, they'll see to it they come out smelling like a rose during the bankruptcy proceedings.