jetcareers - View Single Post - Since when does a bankrupt company pay bonuses?

Sean_S · March 19th, 2005, 00:11

CEO’s have only two jobs; make money for share holders, and make sure the company complies with all SEC related laws. Sure, it is unfair that employees are taking huge pay cuts while executives are receiving huge bonuses. On the other hand if they are paying the bills and giving returns on investments then they are technically doing their jobs giving them plenty of justification for bonuses. I don’t feel that it is either ethical or moral to use pay and benefit cuts to return on investments but when it is your job to please share holders I guess your view could easily change.

In the case of United Tilton had no way of returning on investments, his job is to get the company back into shape. Have any of you that are complaining about the bonus actually looked at the companies 10-K? Tilton is doing his job maybe we shouldn’t be so fast to complain about his moral or ethics and bash Tilton, place the blame on the board they defined his job and he is doing it. He increased income and decreased expenses and did a pretty good job at it. Although he met his goals at the expense of the employees, his job is not to please the employees. He doesn't work for the employees he works for the investors and share holders of United, his job is to look after the interest of the investors and share holders.

I personally do not agree with him taking the bonus but he has every right to that bonus.

March 19th, 2005, 00:11	#15
Sean_S Junior Member Join Date: Mar 2005 Posts: 241	Re: Since when does a bankrupt company pay bonuses? CEO’s have only two jobs; make money for share holders, and make sure the company complies with all SEC related laws. Sure, it is unfair that employees are taking huge pay cuts while executives are receiving huge bonuses. On the other hand if they are paying the bills and giving returns on investments then they are technically doing their jobs giving them plenty of justification for bonuses. I don’t feel that it is either ethical or moral to use pay and benefit cuts to return on investments but when it is your job to please share holders I guess your view could easily change. In the case of United Tilton had no way of returning on investments, his job is to get the company back into shape. Have any of you that are complaining about the bonus actually looked at the companies 10-K? Tilton is doing his job maybe we shouldn’t be so fast to complain about his moral or ethics and bash Tilton, place the blame on the board they defined his job and he is doing it. He increased income and decreased expenses and did a pretty good job at it. Although he met his goals at the expense of the employees, his job is not to please the employees. He doesn't work for the employees he works for the investors and share holders of United, his job is to look after the interest of the investors and share holders. I personally do not agree with him taking the bonus but he has every right to that bonus.