Why Are Execs of Bankrupt Companies Being Rewarded With Millions?

It’s hard to tell people not to be angry with capitalism when the system is rewarding failure with millions of dollars in bankruptcy bonuses.

AccessTimeIconJul 14, 2020 at 7:00 p.m. UTCUpdated Sep 14, 2021 at 9:30 a.m. UTC
AccessTimeIconJul 14, 2020 at 7:00 p.m. UTCUpdated Sep 14, 2021 at 9:30 a.m. UTC

It’s hard to tell people not to be angry with capitalism when the system is rewarding failure with millions of dollars in bankruptcy bonuses.

For more episodes and free early access before our regular 3 p.m. Eastern time releases, subscribe with Apple Podcasts, Spotify, Pocketcasts, Google Podcasts, Castbox, Stitcher, RadioPublica, iHeartRadio or RSS.

This episode is sponsored by Bitstamp and Crypto.com.

Today on the Brief:

  • A followup on Tesla, corporate earnings and PayPal’s crypto ambitions
  • New COVID-19 shutdowns in California 
  • Small businesses on the brink 

Our main conversation:

Bloomberg has reported recently bankrupt companies including J.C. Penney and Hertz had provided executives with more than $131,000,000 in bonuses. 

On this episode of The Breakdown, NLW examines:

  • The logic behind these bonuses
  • Why that logic is stupid 
  • How this sort of reward for personal failure in the wake of 2008 led to the rise of populism on the right and left 
  • Why we should allow companies to fail 
  • Why people’s sense that the system is a crony system isn’t wrong

For more episodes and free early access before our regular 3 p.m. Eastern time releases, subscribe with Apple Podcasts, Spotify, Pocketcasts, Google Podcasts, Castbox, Stitcher, RadioPublica, iHeartRadio or RSS.

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Investing in the Future of the Digital Economy
October 18-19 | Spring Studio, NYC