The rich keep getting richer. But not if Connecticut Attorney General Richard Blumenthal can help it. The New Haven Independent reported yesterday that Blumenthal is attempting to block bonuses to executives at the New Haven Register, which filed for bankruptcy protection on Feb 21:
The filing included a proposal to give 31 “key” executives $1.7 million in bonuses — some termed “shutdown bonuses” — if they meet certain goals. Those goals mainly consist of shutting down newspapers and firing 450 more full-time employees by March 31 (for a total of 590 to date). …
Posted in news industry, newspaper bankruptcy, newspaper cutbacks, Newspaper industry, newspapers, newsroom layoffs
Tagged Attorney General Richard Blumenthal, bankruptcy, Chapter 11, executive bonuses, New Haven Independent, New Haven Registry, Newspaper industry
As Obama rails against $165 billion in AIG bonuses, TalkingPointsMemo reports that the Treasury Department has had the power to limit executive compensation since the bailout legislation was passed in October. Elana Schor quotes Rep. Brad Sherman (CA):
We had a provision in there that said Treasury was supposed to establish, by regulation, standards for executive compensation. We required that to be done — had it been done, it would have been binding, whether [or not] these contracts had been signed earlier. It’s entirely within the power of the federal government to have contracts modified [at companies receiving public aid]. Nixon had contracts modified by the federal government. We gave a similar power to Treasury.