Manager Bonuses Are Beneficial In Bankruptcies, Study Says

Law360, New York (August 10, 2012, 4:09 PM EDT) -- Incentive bonus plans for managers of bankrupt companies can significantly improve outcomes for creditors and expedite bankruptcy proceedings, according to a new study released Wednesday by two finance professors in Hong Kong and Canada.

The study — co-authored by Vidhan K. Goyal, a professor of finance at the Hong Kong University of Science and Technology, and Wei Wang, an assistant professor of business at Queen’s University in Ontario — defended the use of retention or incentive bonuses to keep top brass from bolting bankrupt firms during...
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