Rep. Cheri Bustos (D-IL) has issued a response to a recently delivered Government Accountability Office (GAO) report examining bonuses earmarked for corporate executives and senior leaders amid companies declaring bankruptcy.
Bustos initiated the GAO analysis via last year’s FY 2021 Appropriations package in the wake of introducing the No Bonuses in Bankruptcy Act, which seeks to end executive bonuses during corporate bankruptcies for those who make $250,000 a year or more.
Officials said the GAO’s work focused on the timing and size of bonuses.
“Bankrupt companies paying bonuses to highly-paid corporate executives and insiders, all while laying off thousands of hard working Americans, is a problem that we need to fix, and that’s what this report shows,” Bustos noted via a statement. “You shouldn’t be able to cash out after running your company into the ground and risking the livelihoods of working people. I am glad that the report I commissioned from GAO calls for common-sense policy solutions and will work to reform this appalling practice.”
In FY 2020, authorities noted that 309 executives across 47 bankrupt companies garnered authorization to receive $207 million in incentive bonuses. The average bonuses authorized totaled $701,455 while the maximum amounted to $13,319,100.
“Simply put — executives shouldn’t financially reward themselves for laying off workers and closing facilities,” Bustos concluded. “This report shows we should fix that and that’s just what my bill will do.”