Doublethink at Six Flags: CEO to get $3 million bonus if amusement park chain goes bankrupt
Published: April 15, 2009 at 9:34 AM
In the one linked above, we learned yesterday that Six Flags CEO Mark Shapiro could get a $3 million bonus if the chain successfully renegotiates its crushing debt burden. Shapiro would get the bonus if Six Flags restructures the debt on its own, or if the debt is restructured as a result of filing Chapter 11 bankruptcy.
So if the chain goes bankrupt, and emerges from bankruptcy, Shapiro gets an extra $3 million, on top of his $1.3 million annual salary.
To be fair, the chain does have to emerge from bankruptcy for Shapiro to get the cash. If Six Flags goes belly up, no bonus. But still. While I think Shapiro deserves a hefty bonus if he can continue Six Flags' turnaround while staying out of bankruptcy court, it seems just wrong to me to be rewarding corporate executives for anything when their firms end up in bankruptcy.
Bloomberg also has some reaction to this so-called "success bonus."