How CEO’s Are Making Billions by Making Their Own Companies Go Bankrupt
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- Опубліковано 1 жов 2024
- This is the company of Whiting Petroleum. It is a hydrocarbon exploration company that was founded in Denver, Colorado in 1980. And over the last 40 years, the company has made its money through oil production, oil exploration, and real estate as well.
From the year 2005 up until the year 2015, the company was extremely successful as it made billions of dollars in profits before going through some financial troubles in 2015, and finally getting back on its financial feet in 2018.
But then something changed. When the Saudi-Russian Oil war started earlier this year, and when the lockdowns significantly cut global oil demand.... oil prices fell across the world, which in turn has made many large oil companies creep towards the brink of bankruptcy.
And because of this, the Whiting Petroleum company recently announced a 3 billion dollar loss thus far in 2020.
This 5 month downturn, combined with billions of dollars in debt that they have compiled over the years, has forced the company to declare chapter 11 bankruptcy.
Now chapter 11 bankruptcy is quite complex, but to summarize it generally involves courts, and banks renegotiating the terms of the companies debts. It may also involve forcing the company to layoff a large portion of its workforce, and/or selling off any assets to help the company survive.
Now you would expect that when a company goes bankrupt and might be forced to layoff many of its employees that make between $50,000 and $100,000 a year... that the company would pinch every penny in order to help keep the company alive. That way they could try to avoid essentially being bailed out by the banks and the public taxpayers.
But in the case of Whiting, The exact opposite thing happened. Because Its top executives were given bonuses of just under $3 million dollars each, right before the company declared bankruptcy.
Now, I am not someone who cares how much money someone makes. If executives deserve to make hundreds of millions of dollars a year, then thats fine by me. But when your company is on the brink of insolvency and is about to be bailed out by the banks and the government... AND when potentially over 100 of your employees are at risk of being laid off... then you probably shouldn’t be giving out millions of dollars in bonuses to the top executives. That money should be going towards things that could help keep the company alive.
Now, the counter argument is that companies want to try their best to keep the executives that know how to run the company. Because the alternative option which is, hiring new executives, could hurt the company, and prevent it from getting out of its poor economic situation in the shortest amount of time.
And the reason why they give out these bonuses right before the company goes bankrupt is because once bankruptcy is declared, the courts have more say into how much compensation an executive can receive, or if they should receive anything.
Essentially these bonuses are a way to circumvent bankruptcy laws, and prevent the company from losing its executives who in many cases were a part of the leadership that lead to the companies bankruptcy.
But the trouble is...is that this is just one example of companies that are going bankrupt while trying to hand out millions of dollars to their top executives right before declaring bankruptcy.
Extraction Oil and Gas for example, is dishing out just under $7 million dollars to its executives this month. Chesapeeke energy dished out $25 million. California resources restructured its compensation for its ceo, so he would receive double his annual salary and bonuses if he were to be let go.By the way he made 10.5 million last year alone.
And these examples of millions of dollars in bonuses being given out to executives at failing oil companies, don’t just apply to oil companies.
Macy’s rolled out $9 million to a handful of executives, despite laying off 3,900 employees. Neiman marcus who recently filed bankruptcy, wants to dish out $10 million to its top execs. JCpenney dished out $10 million dollars in bonuses, with half of that going to the CEO. And in fact, out of 45 of the largest companies that recently declared bankruptcy, roughly two-thirds of them paid out millions in additional executive bonuses within 6 months of their bankruptcy filing date.
Transcript too long. End.
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Hey everyone, this one is a little different and tackles some issues that are similar to what happened during the financial crisis of 2008. Let me know in the comments what you guys think! Also I love all 335k of you. I am astounded about how many of you enjoy my content
Your content, presentation style, and to the point agenda is the reason why I wait for your video every week. Amazing.
4:50, Robert Nagasaki said that the corporations decide what laws are written which is why they are the least taxed.
*JACK, WHAT WOULD HAPPEN IF THERE WAS A TAXPAYER REVOLT & PEOPLE REFUSED TO PAY TAXES ?*
Informative video. Subscribed
"There isn't enough money to go around" .... they're literally printing it, bruh.
CEO’s doing this is like insider trading if they knew that they were going to declare bankruptcy and still got the bonus they should have to pay it back or go to prison or both!
Not gonna happen as long as American corrupted culture is in control!
Straight up fraud.
If we're expected to have six months of emergency savings, so should all of the larger corporations
Half of Americans don’t even have more than $400 to their name
What is demanded of everyone who's a working bloke not the same as biggy co's.
@@par2go737 But big companies get to file taxes as individuals 🤦♂️ the system is definitely rigged against the worker.
I think to start investing with a small investment. I wanted to ask you if it is right to start investing small amounts in shares? For example, the guys from the Orca App say that the main thing is not quantity, but regularity, is it really so?
I just saw the title and I was like, duh! I would do the same under the current crony capitalism. Real capitalism can’t allow stuff like this to happen. Nowadays you get punished for running a company well and get rewarded for being reckless
Finally someone who understands
This has been going on for a number of years.
Well in the past when companies go bankrupt it's because they have zero cash so nobody gets any pay. That is real capitalism... running out of funds and no hard assets equal to bankruptcy. Now with bailouts, overdraft and credits... I'd say it's really a scam. Even the Church of Scientology found loophole to abuse government support...
The fault lies with the government. You know a country with absolute practice of crony capitalism? Communist China. The entire economy there is a Ponzi scheme to lure and cheat foreign investors.
MrArthoz Totally agree with you.
@@justincase2830 Try decades. Kicked into high gear in the early 1960s. Stick with JFK's famous expose' speech. It's always been this way. They haven't bothered to hide it since 1963
Don't forget every member of Congress voted for CARES. Most members of Congress also own stock in these companies.
Great work like always!! I made my first million trading stocks. With a good investment plan that ensures steady incomes without any doubts you can prepare for a well organized retirement. I started investing in stocks 3 years ago and so far, I am making a good yield on my dividend. Charlotte Rose Rice is a licensed US broker who manages my account and has helped me grow my 6 figure portfolio to over 200% up. I love the passive income
I've been looking to invest aggressively in stocks, I live in San Francisco and I only have 150k to spend but I don't have any financial education for it and lack smart mentors. Btw, I've just googled Charlotte Rose Rice. WOW! she has good qualifications, I wrote her on her webpage and I'm waiting on her reply. I'm excited to get started and see how far i go in 5-10 years time. Thanks again
"How many stocks do you want to own?" Average investor: Yes
its funny because this was me a year ago
ikr oh well I myself am pretty much focused on building my Roth IRA
Failure by corporate executives gives them profits. Crazy world
the rich get richer the poor get poorer
Only seems crazy to envious jealous individuals who can't join their shenanigans
@@par2go737 blame person for decency?
Any bailout by the government is bad. Let bad business reap it's reward. The airlines probably won't go away, they will just shrink, more and new airlines will come in to compete and flights would probably be enjoyable again.
Flights were not pleasurable prior to covid19 and the misery index of flighing will evolve into not flighing anywhere unless it's an absolute emergency. Fun is over!
yup...when the government subsidize failure, the people has to pay for it, and the industry gets more of it (failure). so the problem is the government.
@@JJJ115583 this time the gov is responsible for airlines fail. They should help airline
"go bankrupt"
"get money"
Got it
Don't forget to exercise your cheap options on the company stock and cash those out also.
@@justincase2830 nice one
I just feel bad for the blinded employees who depends on jobs forgetting investments.
socialize losses privatize profits
@@onh1137 Thank you Oliver.
great vid jack ps- normal people call it *theft*
Most people wish they had the chance to emulate same thievery for themselves
Hey Jack... keep up the good work.
1) more often than not, Govt knew these loopholes wud exist and probably went along with the PPP bailouts for their 'buddies' anyways
2)If as a company you pay out disproportionate amounts of bonuses (more than 30% of total wage bill/operating budget) less than 6 months before filing for bankruptcy then you receive no mercy/assistance from the state. NONE!!!!
this is sick....
1) Chapter 11 needs to go, no re-organization, just liquidation. 2) Sue the board of directors, they are approving these outrageous compensation packages and are fiducially responsible. 3) Remove the limited liability of corporations, every share owner should be responsible for an equal share of downside risk.
Don’t forget about the board of directors! They are all compensated for supposedly being an oversight committee for public companies. If you notice, multiple CEO’s of companies also hold multiple board positions. How much are they compensated for being a board member? I would guess A TON! And they approve these bonuses. They are all scratching each others’ backs leaving the employee and taxpayers with nothing. How can one person perform board member duties if they are already running multi billion dollar companies themselves? The answer is of course not. They just gloss over reports, get paid, pay others like them, and sit on their asses getting filthy rich. Our system is so broken and yet they (the rich) managed to divide us over race and other social issues. So as we are fighting among ourselves, they are getting filthy rich off our collective backs.
The corporate mafia style hierarchy knocking off the disenchanted stockholders
JR agree with you, but Ufortunatly what is there to replace the sysyem? the 99 % movement didnt even get global before fizzilng out, communists tried and failed in less than a century. Hope the masses get more educated then voice and sway public opinion outcry/contempt that some of the fat cats deserve.
Only a dynamic leader supported with a mass population movement quasi- revolution is the hope. Not likely nowadays. Otherwise it's further downhill !@@alanh8794
Alan H I honestly don’t know the answer. For now, I’m hoping people just get more educated on these things just so we know. Maybe someone with political guts will pass legislation that if taxpayers’ funds are involved, that they can never act the way they act before they took taxpayer funds. Let them go bankrupt if they prefer that, and also be able to claw back bonuses up to a few years before bankruptcy. Money makes people way too greedy so we gotta our safeguards in place. I think we did have some laws after the financial crisis hit and after the Enron debacle but they’ve been weakened since.
Par 2go that’s why they keep dumbing down the population. They’re hoping people will be too dumb to care about something so out of their depth of understanding. And it’s working. Just look at how many people are obsessed with reality tv and the faux news cult.
There are lots of companies in the UK that are failing or have closed and are making large redundancies even before this Covid-19 situation what amazes me is the people at the top, the CEO and directors are on massive pay packages and as the company goes bust they all take a large bonus. The rest of the staff just lose their jobs and are throw to the wolves so to speak.
Another thing normal staff have seen over i would say the last 30 years is their pay being devalued, normal staff have not seen the same wage rises that the top executives seem to have taken in the same period. I remember a director at British gas in the 90's being reported being paid £250,000 pounds per year now the same role pays £5 million pounds + performance bonuses. Regular staff have not seen much difference in their take home pay. My dad retired 10 years ago and is amazed how much less people are currently getting paid myself included, but bills and cost are rising. Wonders how I make ends meet!
We have even had companies set up and close within weeks and the directors take large amounts of money out of the business without making any real money! It also is amazing that before I get my money paid all my taxes are taken but lots of companies and people at the top seem to find loop holes and pay little to no taxes . No wonder the care and social systems that are funded via taxes are at breaking point.
Makes me wonder just how future society is going to operate? Certainly looks like the richer will finds ways to exploit people and the systems and the rest are going to suffer and struggle. But the problem with that is the poorer masses are likely to push back.......
Absolutly appalling!
I have always been an anti advocate for 1-99. I have worked my life in multinational banks and could not stop myself from standing up in tow hall meetings and say what I believed. I always believed, the successful team should be equally or moderately compensated rather the leader 99 and the team 1%. I can keep going but for now, this is enough to share my thoughts. Love your video and would like more.
Say whatever you please. It falls on deaf ears as long as the power elite in control
I say let the companies go bankrupt and close down, if they rather give out bonuses to their shitty ceos than fight to keep the actual hard working employees than best they just don't exist anymore. Any of big corporation that took a ppe loan should be forced to pay it all back with interest. And the airlines, I agree with Italy. If the people in charge are more invested in their own individual interests over that of the company than clearly they shouldn't be running a business. These billion dollar companies should have a rainy day fund that can tie them over for 6 months to a year, thats what we are all told so why is it any different for them? The small businesses are the ones that should be protected. After this is over it would be in taxpayers interest for some of these corporations to cease to exist and their would have been bail out money invested in start ups for people who have lost their jobs.
"There isn't enough money to go around" .... they're literally printing it, bruh.
It loses value as more money is printed out
Very few companies care about their employees anymore. Especially the big ones.
While watching this video I was shown 5-6 “ads” from financial firms and advice about executive compensation. Anyone else see this?
Huh. Only saw one.
They win. You lose. Seems like old news
Only short term. What goes around comes around. Usually in more painful ways.
great video...but I don't think am buying or holding any stocks for now,I'll rather stick to my crypto currency trading
I think they'll still be another crash, Bitcoin investment is better
definitely correct
people fail to understand that Bitcoin can be a lucrative way of making money
trading Bitcoin is one of the best way of paying bills which also creates opportunity for crypto lovers
so no one is now talking about the stock market again, Bitcoin is now the best investment?
A Bonus ought to be a reward for success,when a company fails ,executive saleries may be continued,but not one penny should be paid out in Bonuses,these moneies should go toward preserving and turning the company around. Rewarding executives for failure, is incompentent and morally wrong. If anything, when a company fails,the ablities of the top executives should be closely examined and a reduction in saleries considered along with demotion or dismissal.
Bring on the revolution
Hopefully like the civil resistance and the People Power Revolutions in history
4:50 "largely from the middle class" you mean largely from the working class. the middle class is a myth.
Why is everyone surprised by this? Executive compensations are *part of the contract* and set by the corp's charter and there are *no governmental laws that sets or limits them* . There are also no laws about it when the org is predetermined to go into bankruptcy administration. With no laws, skies the limit, regardless of economic condition or corp performance.
Thank you for helping me understand other facets of the corruption that is ruining our lives. If these brilliantly criminal minded people, who make up these corporate entities used their talents with integrity we would love on a paradise and be truly free people. Too bad. They think they won't have to answer.....They will answer. Most unfortunate for them.
Hedge funds also got PPP money. Disgusting.
Stock buybacks need to be illegal again.
I thought I was going to see the Lamborghini bought with PPP
Me too. But that was reported within the last couple of days so probably didn't make the cut due to timing.
I don't understand wouldn't those bonuses be the reason they're going bankrupt ? I think that's called bankruptcy for fraud
25 dislike - executives of those bankrupted companies
Thank you 🙏 so much for sharing this with us. May God continue to bless you and your family always Amen 🙏
I found out after the last global meltdown that a bailout is considered earnings and therefore by contract, executives are entitled to their bonuses.
If course these executives should get a bonus to keep them. No telling how bad someone else might do, worse than bankruptcy that is...
Governments need to require successful companies to bank some of their profits each year so they can survive a year or two of turbulent times without bailouts.
You say bang for tax payer buck.
I say communism.
I don't like the lockdown nor do I like what apparently will be the resultant government ownership of everything.
Welcome to a Venezuela style economy.
Breadlines without bread 😬
Don't church employees still pay federal medicare and social security taxes?
What they should do is have the money put into building and flipping businesses based on short term goals selling it to the management.
The whole world is upside down. I'm not surprised. Thanks.
Legislation should be i place to prevent this from happening!
Other than the ones taking advantage of this I can't fathom a single person that is ok with this practice of crony capitalism.
Time to invest in oil companies
What we have here is an MBA Program, that will probably be used at the Harvard B-School. They do "Case Studies". Each "Case" will enable, and empower students to get wealthy.
Why do you think certain schools dominate business?
Universal forbearance would address most of the issues of money that is absolutely needed. No landlord would have any debt that needs to be immediately paid or accumulated, there is still that regular maintenance cost but otherwise they don't need any more than what the bare minimum everyone else needs.
And this would go for every business that gets that stupid concept of a bailout. The government should require forbearance on all debt during a state of emergency. So then government money would go towards all individuals who do not have substantial savings and a little on top of that to help sustain some economic activity. A $1,200 check every single month including to the most wealthiest people, would eliminate incentives given by all the other programs that have been going on. Including substantially higher unemployment checks. It just makes good money sense at the fair thing to do is to eliminate the largest threat which is debt payments.
Like the old say it like the old saying goes someone's lost someone else's game it is my game while those gas prices are low and then sad about the prophets I don't give a damn about cheap gas I'm loving it..
This is disgusting to watch.
Nothing is too big to fail. Let them fail...
Wisdom and processnowledge is in the middle Management. When they go, the Company loose knowledge which cant be replaced easily.
Ceo and top Management have to be well connected, good Leaders, but they are now overpriced.
Local congregations have a tax status similar to that of schools, fire houses, libraries and museums. They may not pay state property taxes, but all their employees and remunerated personnel pay income taxes as do the rest of us. The republic determined from its inception that charities and voluntary organizations should not be taxed in the same way as are private property and commercial houses. However, come 2021, this may change radically if churches do not deny the ancient biblical teaching on personal moral conduct. Congregations have been shuttered in most US states under guise of a certain political hoax, but could have their properties taxed or forfeited by executive decree if videos such as this one keep lumping them together with vulture CEOs.
Wuld it be possible to find out which corps got PPE?
Give me a point which says Socialism is better than Capitalism
Self rewarding by executives just before bankruptcy is similar to insider trading and should be punished as such.
Corporates using the loopholes is nothing new.
Considering that we are in a unprecedented situation, helping the airlines tide over is not such a bad thing. We may excuse American Airlines of buyback of their shares.
Why would i want to give my money to failing companys and give there bosses more of my hard earned money.
Absolutely mad word.
That is normal for all companies that go broke. ALL CEO only care about themselves.
1 -- Bonuses within 2 years of bankruptcy should be available to be clawed back by courts.
2 -- No tax exempt institution should receive taxpayer relief funds.
Unfortunately corruption is too powerful.
Any company who sell stocks / any kind of lone then no one shouldn’t have buns more than one month Salary . If they gate Government bailout the should not get any bonus.
This whole system needs a change and all those old school executives need to be replaced. Enough of their mess, time for a change in capitalism.
Chapter 11 bankruptcy means the company plans to survive.
They dont want their top people going to a competitor and working against them.
They dont want a VP who has detailed knowledge of the geology report on an oil field that they just spent $30,000,000 studying going to a competitor and telling that guy "drill here."
You don't want your CFO going to a competitor and telling them how much your lowest price for an asset is before you sell it.
You don't want your trade secrets , sales contacts and other critical information walking out the door during the bankruptcy because the judge won't let you pay them.
If they leave because you can't pay them, those non-competition clauses go right out the window.
Then you have the added problem of what happens during the chapter 11 bankruptcy if most of your management gets hired away during the bankruptcy.
How do replace the CFO when you cant pay someone to be the CFO?
How do you negotiate a settlement in court when all the people you need to do it are gone?
So you pay them to stay through the chapter 11 bankruptcy.
The company basically goes up to its key people and says "We're filing chapter 11, There's no guarantee you'll be paid for the next 3 years....how much will it take for you to stay with us through that?"
Finally! Had to scroll through so many identical posts till I found someone who made sense! Thank you for the context :)
@@rokask Thanks.
I just felt that someone should point out why this is done and why the courts allow it.
thank you for not ignoring this like so many others. i think its one of the main reasons along with the fed as to why the wealth gap is larger than ever especially in America.
This is the American way, duh!
The government should be using these deflationary times to print money to pay off debts, not to fund a flawed system
America has drifted into a corporatists society, some call it "late stage capitalisms" However that would be the same as calling communism socialism.
All a corporatist society is, is a strong government that works in favor of corporations and not the people. The idea is if the government provides for the corporation, the corporation will provide for the people, pretty much trickle down economics.
Keep in mind that the wealth distribution in the United States, currently mirrors Napoleon ruled France, there's hundreds of videos about French life during Napoleon, basically he collapsed the French economy by constantly staying in war.
The worst thing going on is CEO's taking over companies that might not even be headed towards bankruptcy, maybe the executives just want fat bonus checks and want even fatter bonus checks when their company bankrupted and the end results in selling out to someone else. This is bad because this would signal the latest stage of corporatist society. When smaller companies no longer care, they can purposely burn where they are to the ground and make enough money to fund generations and generations of family to keep living.
What the latest stages of corporatism looks like would be America with pretty much a small handful of companies with all the control, say Amazon takes over all retail, One restaurant chain owner buys all chain restaurants, one car manufacture takes over all car manufacturing, one telecom company owns all telecom, one bank owns all the banks, you get the point, and in the past ten years I've seen this ramp up faster than ever before.
When is the last time you saw a grass root company start up and not get bought out? My last was facebook, and If I remember correctly they own pretty much all social media now, which makes sense, the basically invented mainstream social media. I watched youtube, and a lot of other websites sell to Google, Amazon bought twitch TV, I watched a lot of fast food restaurants fall under one owning company.
The problem with this in the ultimate end is that one day, everyone will work for one company in whatever career field they try to go into. I became a tradesmen about 10 years ago, and back then becoming a tradesman, was talked up because most of the companies that contract trade work are small, and generally pay very well.
I wouldn't be surprised if one day you log onto Amazon.com to contact a plumber, or whatever else.
I can see it getting so bad to the point where, everyone is being paid low wages because who else is going to compete, where else could you go work?
I graduated in 2013, and a majority of people I graduated with have a college degree, or are tradesmen that wasn't the same from my parents generation.
The BA holders, and tradesmen make with inflation accounted near the same as a factory worker in my parents time, that's probably why college was so un-popular back then.
I think theirs a bigger problem here, and it could be thrown out that multiple different political philosophies are the solution. I'm not looking for a political debate though, just showing observations.
Informative and easy to follow, as always 👍🏼 I would add there are many fraudsters in the mining industry. In QC, lots of govt money gets shovelled but the returns are never there.
Where can you investigate or see which are the frauds in the industry?
@@DanielLopez-sh2pp I have it on good intell' that securities fraud guys could get mining licenses in or around Timmins without qualifying for them. More superficially, you can google and find other stuff as well. One mine in particular, if memory serves, Stornoway. Ironically, the man who obtained a license had a US conviction based on diamonds.
its funny how you seperated church of Scientology and all churches. Those that belong to that relgion belong and churches. Also, you speak as they are the biggest church in the world by seperating them and giving them most importance. The biggest church is the Catholic Church.
i still dont really understand why they give bonus to executives before bankruptcy, i dont think he did a good job in explaining why. Can someone explain to me? thanks
There are two conclusions to this. Either government bailing out corporations is proof the free market would be more fair if the government didn't do that. Or... The free market would be ten times more volatile and chaotic if government wasn't involved at all and despite how corrupt this is it still is not as bad as it could be without any intervention.
Hi Jack... I am a fan of your video..
In 1988, Japan had a huge private bailout... Corporates had criss crossed ownership among them... The result was no imminent recession but there was no economic rebound either. Currently Japan is experiencing almost zero growth.
In 1998, during asian currency crisis, IMF is against all asian goverments to do economic bailouts to all distressed corporation, by saying bailout will lead to slow death..
When it was happened in USA in 2008, the opposite was done, but wall street kept soaring. Econ growth was good, liquidity is ample, so whats different with that of Japan..
Is it due to petrodollar, or US export is good or what?
Care to give your opinion..
In order: No, No, and if it needs bailing out, it deserves to no longer exist .
If companies receive bailout/loan money from the gov't, remember our gov't is Of/For/By the People, a certain percentage of their profit should go back to the American taxpayer. Because ultimately money doesn't come from The Gov't but from The tax-paying People.
Having gone through a bankruptcy decades ago, I can still remember the absolute nit-picky ways of the bankruptcy court. It boiled down to every and i mean EVERY SINGLE ASSET I owned, as to what I got to keep and what had to be sold to satisfy my debts.
The powers that the large corporations have had over the past 100+ years to design the most beneficial system of rules applicable to these "human-like entities" is absolutely mind boggling. The fact that much of it happened without the average citizen knowing about it is, in my opinion, completely criminal with a draconian cherry on top.
"Job creators?" Sure they are. In the sense that they want to benefit from every single employees work output. They aren't hiring for the benefit of that employee...it's all about profit. Which is built-in to a corporations fiduciary requirements. Not responsibility? No, they are legally required to make the most profit possible for their shareholders.
So if the term "job creators" makes them look good or sound noble, they should also bare the "job destroyers" insignia as well. Hiring and firing for the benefit of the bottom line is about as far from noble and as close to draconian and sociopathic as it gets for this type of legal business entity.
You teach me so much Jack I don’t even skip the Ads just to get you as much support as possible.. everybody Like , Subscribe, and Comment. This man give Corporate Knowledge ✊🏾. Thank you
They need to reinstate the regulations prohibiting stock buybacks, which, under Ronny Reagan, was eliminated. That's just the first step. Limits on executive compensation of publicly traded companies would also go a long way. Additionally, BK trustees need to have the ability to reverse transactions beyond the 6 month window before a BK that they're currently afforded.
Your three questions: There should be a claw back of bonuses for bankrupt companies (firing of boards and executives should be considered); No. Large business should not get loans using small branches; Airlines (and other companies) should be forced to issue stock to replenish funds spent on buy-backs before any loans. Stock delusion? Boohoo!
I fly for a major airline and agree with you. When one CEO was asked about stock buybacks he said hindsight is 20/20 and they weren’t as bad as American which is a poor excuse. They shouldn’t be buying back stock when it’s high anyway and we were making record profits but management was still stonewalling the pilots’ union during negotiations. Part of the bailout agreement is we can’t do the stock buy backs for a period of time. But I think that unless the bailout is a loan, instead of a grant, and until the loan is repaid, that buybacks shouldn’t be allowed at all.
How does a corporate CEO sleep at night with the knowledge that he's $20 million richer weeks after his lower-level employees have been abruptly laid off? And without the care in the world where their next means of income is going to come from?... They piss me off!
Doesn’t make sense to reward failure to those CEOs with hefty bonuses. There should be a mechanism that make them accountable. Yes to government taking ownership to airline business or even big banks as it will payback the taxpayers money plus profits in due course. Rails, Airlines, banks like public consumption product can be nationalise if private sector fails.
I get that LLCs are legitimate businesses, but they don't seem [to] have full liability by definition. Shouldn't they be held back from "bailout loans" over partnerships and sole proprietorships?
Executives really should not be paid millions in bonuses if their companies have done poorly, and especially if filing for bankruptcy is in the works/plans! Corruption is huge! What irks me is when these companies want their investors to vote FOR compensation for the execs when they reduce or do away with completely the dividends!!!
Where does the notion come from that "main street" jobs are more valuable than "corporation" jobs? And that corporation shall save money for bad times, but this cannot be expected from small businesses? Well, the owners of small businesses also spend money on things like cars and real estate, do they? And they are far richer than their employees, who they also not overcompensate, to say the least. They certainly use every loophole in the tax system that they can find. So, as long as the PPP funds are used for what they were intended for, which is protecting employees, it should not matter, if we save 100 jobs in one company, or 10 jobs in 10 companies. I find it appalling that in every occasion possible, the hate against "the rich" and "the capitalists" is showing up.
If there is NO public bailouts, then they can do whatever they want, because in the end, it's a self-correcting problem. However, if there is going to be bailouts over and over, these f'ers need to lose their heads. Mass layoffs while taking a big bonus from taxpayers money?
Can't the govt buy a stake in the company in exchange for money? So it's right there in the middle of giving bailout money and outrightly nationalizing the whole company. This way the govt generates money from the investment thus helping to control debt, AND the company is saved from bankruptcy and so the people get to keep their jobs with this influx of money.
The government should not be giving out free money. Some of these industries need to be bailed out, they are to important to fail but the bailout money should come with conditions like 1) the company must save some of its profits for a rainy day and exaust the rainy day fund before asking for help 2) the bailout money has to go towards paying worker salaries, rent and materials it can't be used for executive bonuses 3) the government controls the company until the bailout is paid back 4) Company management is investigated and anyone who commited a crime is fired/jailed. Executives will continue to mismanage these companies because are no consequences for screwing up, there is no incentive to do the right thing. More people should care about these bailouts because we will pay for the bailouts with higher taxes/less services. If my taxes are going to go up I want it to be for a good reason. I don't want to encoradge these companies to continue acting recklessly.
I don't mind paying CEO bonuses, PPP loans to large corporates and buying back airlines shares as an investor, as long as US keep pouring my bank accounts with printed money.
Bonuses to keep execs. Who know how to run the company? If they knew how to run the company, it would not be bankrupt. They are smdefrauding creditors and taxpayers and maybe shareholders.
Who exactly in goverment approves these loans and bailouts? It would seem they are complicit in criminal activity, and their names should be revealed. I am reminded of something Mark Twain said: "More banks are held up at the point of a pen then at the point of a gun."
CAPITALISM, At its best. You are not allowed to think any other way. They call this Free Market, when Execs are free to take what they want, and screw everyone else.
I'm sure these CEOs have full support from politicians. Or at least they will quietly turn their heads other way. Otherwise politicians could have very hard time funding their election campaigns in future.
How the hell do they give out money they do not have. This is sort of following the republic we live in. I truly feel that this form of representation that was needed in the past is antiquated. Share holders much like individual voters are represented buy the officers they vote in. These officers vote the bonusses for these C.E.O's. The problem is these officers do not have to make a contractual statement of exactly what they plan to vote for or against. In order for Incorporations to work properly the leading CEO's must be held responsible civilly and criminally. Otherwise eventually there will be no interest to invest in companies. Maybe we could remove property protection from all controlling officers in some way linking their Private income and property to the success of the company the are on the board of.
Italy still works in the Mussolini fascist Economy Way most business are 30 % publicly own meaning the sate 30 % privately own and 30 percent by a bank
Video is a little misleading. Any stock, which is presumably a lot, that these executives held in the company should be worthless after bankruptcy.
We were all taught from young the principle that if you make a mistakes you have to take responsibility..Not what I see in corporation bailout esp.banks, airlines and in wall streets..where is thier responsibility? Is there no repercussion of making a mistakes..what a wonderful world to live in.
How do they earn the bonuses by declaring bankruptcy?
They declare bankruptcy and then pay bonuses, but they didn’t force the companies into bankruptcy in order to get the bonuses so very dishonest video title.
So now I wonder what else did you lie about in this video ?
Looks like you are cherry picking your facts in order to stir up resentment.
Just FYI: There were FOUR disruptions/commercials during this video.
Still love these videos!
I think most people aren't aware of this or there would be more of a public outcry. people seem to have an idea about the corruption but rarely have profit and this is sufficient proof
You should look for a youtuber called CM topdog, he does stuff for a crypto currency called Zilliqa its gonna be massive..
I think its criminal what these big businesses do by rewarding leadership for the business failing. Where is the accountability? I know the government holds the middle class accountable when we make mistakes. Yet we are suppose to constantly bail out the big guys when they mess up. When are we going to wake up and impress upon our government that accountability for these large failing business is long over due.
Just want to point out TARP money to Wall Street firms are loans, not free money. US treasury made upto 20% return from the loans which were pretty good return for Tax payers.
we should have make the banks public in 2008. normally when you assume someone's debts you own it. i know it would only work in a dream world but there should be a public bank that is also the central bank that is not in it for profit and is part of the treasury. So no stupid loans for the treasury to the fed and full reserve banking. The treasury would increase the money supply based on some algorithm or metrics.
Virgin Atlantic just filed for bankruptcy in US. But you know what Branson is still a billionaire. Do you think he will take his own money to pay the staff?