RaleighCraps
RaleighCraps
Joined: Feb 20, 2010
  • Threads: 79
  • Posts: 2501
July 31st, 2014 at 3:48:55 PM permalink
Quote: sodawater

Quote: DRich

This is awesome. Revel has been approved to pay management bonuses after the sale.

http://cdcgamingreports.com/revel-allowed-to-pay-bonuses-if-sale-nets-high-enough-price/



Capitalism, it works (for the rich)



This isn't even capitalism though. This is outright theft, and the judge is as complicit as the executives who are expecting to get paid. $1.75M bonus for running Revel into the toilet? WTF! How much would they have expected to get if they had managed to just break even? Unreal
Always borrow money from a pessimist; They don't expect to get paid back ! Be yourself and speak your thoughts. Those who matter won't mind, and those that mind, don't matter!
AxiomOfChoice
AxiomOfChoice
Joined: Sep 12, 2012
  • Threads: 32
  • Posts: 5761
July 31st, 2014 at 3:55:30 PM permalink
Quote: RaleighCraps

This isn't even capitalism though. This is outright theft, and the judge is as complicit as the executives who are expecting to get paid. $1.75M bonus for running Revel into the toilet? WTF! How much would they have expected to get if they had managed to just break even? Unreal



Did you actually read the article?

They are being paid bonuses if they can sell it for a high enough price. They aren't being paid bonuses for the work that they have already done; they are being paid a commission to get a good price on the sale.

Quote:

The bonuses would only be paid if managers, whose identity isnít disclosed, can bring in sale proceeds that reach a high enough threshold

sodawater
sodawater
Joined: May 14, 2012
  • Threads: 64
  • Posts: 3321
July 31st, 2014 at 4:01:50 PM permalink
Quote: AxiomOfChoice

Did you actually read the article?

They are being paid bonuses if they can sell it for a high enough price. They aren't being paid bonuses for the work that they have already done; they are being paid a commission to get a good price on the sale.



And that is still completely ridiculous.
AxiomOfChoice
AxiomOfChoice
Joined: Sep 12, 2012
  • Threads: 32
  • Posts: 5761
July 31st, 2014 at 4:05:16 PM permalink
Quote: sodawater

And that is still completely ridiculous.



Why? If it brings in more money for the sale, it sounds like it is in the best interests of creditors, which is all the the bankruptcy court should be protecting.

Maybe a good sales job can bring in an extra quarter billion, and you are worried about someone getting a quarter million of that for doing that good sales job? That's just silly. If you don't pay them they are not going to work at it; they will do the bare minimum and get a bad price for it.
sodawater
sodawater
Joined: May 14, 2012
  • Threads: 64
  • Posts: 3321
July 31st, 2014 at 4:08:53 PM permalink
Quote: AxiomOfChoice

Why? If it brings in more money for the sale, it sounds like it is in the best interests of creditors, which is all the the bankruptcy court should be protecting.

Maybe a good sales job can bring in an extra quarter billion, and you are worried about someone getting a quarter million of that for doing that good sales job? That's just silly. If you don't pay them they are not going to work at it; they will do the bare minimum and get a bad price for it.



Isn't it already the job and duty of the executives to get the best sale price for the stakeholders of the company? We need to pay these millionaires more money to do their basic jobs?

Executive compensation is totally out of whack and a huge problem in this country, primarily because so many executives sit on the boards of other companies. It's a club and you and I aren't in it, to channel George Carlin.

Do they pay the janitors bonuses if the bathroom is cleaner than some previously agreed upon threshold?
Lemieux66
Lemieux66
Joined: Feb 16, 2014
  • Threads: 24
  • Posts: 1226
July 31st, 2014 at 4:22:44 PM permalink
Quote: sodawater

Isn't it already the job and duty of the executives to get the best sale price for the stakeholders of the company? We need to pay these millionaires more money to do their basic jobs?

Executive compensation is totally out of whack and a huge problem in this country, primarily because so many executives sit on the boards of other companies. It's a club and you and I aren't in it, to channel George Carlin.

Do they pay the janitors bonuses if the bathroom is cleaner than some previously agreed upon threshold?



Revel does have the best bathroom in AC. 3rd floor between the old poker room and the elevators. I've debated sleeping in a stall if I was tired and had no room that night.
10 eyes for an eye. 10 teeth for a tooth. 10 bucks for a buck?! Hit the bad guys where it hurts the most: the face and the wallet.
AxiomOfChoice
AxiomOfChoice
Joined: Sep 12, 2012
  • Threads: 32
  • Posts: 5761
July 31st, 2014 at 5:09:07 PM permalink
Quote: sodawater

Isn't it already the job and duty of the executives to get the best sale price for the stakeholders of the company? We need to pay these millionaires more money to do their basic jobs?



Yes, it is the executives' job, and executive compensation is generally largely performance based rather than a flat salary.

If they are not going to be paid for the sale, why stick around and do it? It's a lot of work. They could just resign. Do you think that they should work for free?
sodawater
sodawater
Joined: May 14, 2012
  • Threads: 64
  • Posts: 3321
July 31st, 2014 at 5:17:30 PM permalink
Quote: AxiomOfChoice

Yes, it is the executives' job, and executive compensation is generally largely performance based rather than a flat salary.

If they are not going to be paid for the sale, why stick around and do it? It's a lot of work. They could just resign. Do you think that they should work for free?



No, they should work for their already-high salaries. If they resign, they won't get that salary. Is there a problem finding people qualified to receive large salaries to sell a business to the highest bidder?

The idea that we should give executives of a failing business a bonus for doing their pre-existing job of finding the best sale price for that failing business is laughable on its face.

You can say the compensation is "largely performance-based," but guess what? The executives already failed their stakeholders by running the company out of business.

Getting a good sale price for the leftover assets is not something that should be incentivized by stakeholders with bonus payments. It's already part of the job description and minimum ethical requirements of the management positions for which the executives are already being paid.
RaleighCraps
RaleighCraps
Joined: Feb 20, 2010
  • Threads: 79
  • Posts: 2501
July 31st, 2014 at 5:23:28 PM permalink
Quote: AxiomOfChoice

Did you actually read the article?

They are being paid bonuses if they can sell it for a high enough price. They aren't being paid bonuses for the work that they have already done; they are being paid a commission to get a good price on the sale.



Yes, I did read the article. But let's look at the facts.

While I don't know what the executives are currently being paid, I would hazard a guess they are getting a very decent salary now, and have been, while they mismanaged Revel into the toilet. And now they deserve a $1.75M bonus if they manage to extract an unnamed amount for the sale of Revel? If they had done what they were being paid to do, there would be no need for a sale. And why should they get more money, when the creditors are going to take it up the yazz once again from a Revel bankruptcy.

How many of the employees who are making jack shit now are going to get a bonus from the sale?

I will say it again. It is downright THEFT.
Always borrow money from a pessimist; They don't expect to get paid back ! Be yourself and speak your thoughts. Those who matter won't mind, and those that mind, don't matter!
AxiomOfChoice
AxiomOfChoice
Joined: Sep 12, 2012
  • Threads: 32
  • Posts: 5761
July 31st, 2014 at 6:13:23 PM permalink
Quote: sodawater

No, they should work for their already-high salaries. If they resign, they won't get that salary. Is there a problem finding people qualified to receive large salaries to sell a business to the highest bidder?



Yes. I mean, you could find them (this is what often happens to a company in receivership -- the judge will assign someone to do it) but they charge a lot of money (probably more than these bonuses) and have no incentive to do a spectacular job since their pay is not performance based. Not that they would not do a passable job, but they have no incentive to go the extra mile.

Quote:

The idea that we should give executives of a failing business a bonus for doing their pre-existing job of finding the best sale price for that failing business is laughable on its face.



Exec get paid bonuses to do their jobs. That is how their compensation works.

Quote:

You can say the compensation is "largely performance-based," but guess what? The executives already failed their stakeholders by running the company out of business.



These bonuses are specifically for selling the company at a higher-than-expected price, not for past performance.

Quote:

Getting a good sale price for the leftover assets is not something that should be incentivized by stakeholders with bonus payments. It's already part of the job description and minimum ethical requirements of the management positions for which the executives are already being paid.



Why should it not be incentivized? If doing this makes the most money for the creditors, then it's the right thing to do. Once a company goes into bankruptcy, it's the court's job to protect their interests.

It sounds like you think that they should do something that is -EV out of spite. And that is ridiculous. If I was a creditor, I would want to do whatever could be done to get my as much of my money back as possible, regardless of my personal feelings towards the execs. Money over spite, every time.

  • Jump to: