High Exec Pay May Be Key To Exiting Ch. 11: Experts

Law360, New York (April 4, 2008, 12:00 AM EDT) -- Many unions and employee advocates are calling for Bankruptcy Code reforms as worker and retiree benefits get slashed in Chapter 11 cases while executives continue to reap large bonuses and benefits. But some experts warn limiting executive pay can lead a company away from a reorganization path and toward a liquidation dead end.

Unions have complained that worker benefits are the first to be cut when a company undergoes the bankruptcy process, while executives who lead the company into the distressed situation are awarded with huge...
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