Sunday, June 07, 2009

Carl Icahn Body Slams Retention Bonuses

The Icahn Report™: It's Up to the Shareholders, Not the Government, to Demand Change at a Company

Why pay bad management to stay? There's no good reason for it according to Icahn.

"Retention bonuses are often little more than an employee racket in bankruptcy proceedings. Why should the very managements that got the company into trouble get enormous payouts? And yet this occurs all too frequently on the ill-advised reasoning that they might actually leave. In many cases, the companies are better off without them."

No comments: