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Consumer Law

Hertz Paid Top Executives $16M in Bonuses Ahead of Its Bankruptcy

Hertz paid out millions of dollars in bonuses to its executives just before its bankruptcy — and a month after it started laying off thousands of employees.

Retention bonuses are typical for bankrupt companies that want to prevent their management from abandoning ship. But they’re always awkward: the company can’t pay its employees or its debts to lenders, but it prioritizes payments to its already handsomely paid bosses.
Hertz (HTZ) paid a total of $16.2 million to 340 executives on May 19 as part of a plan to keep them in place while the company attempts to reorganize, the company announced in a filing with the Securities and Exchange Commission. The executives will be required to return the money should they leave Hertz on their own before March 31, 2021.

Read the source article at cnn.com

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