Oil, Drug Companies Frequently Pay Bonuses in Bankruptcy

Oil and drug companies are among the major offenders in paying executive bonuses in the midst of a bankruptcy.

The practice is particularly widespread in the oil industry. Many companies sought Chapter 11 protection when COVID-19 related lockdowns reduced commuter traffic and subsequent demand for their product.

The foremost offender in the drug industry is Purdue Pharmaceuticals, the company facing criticism for helping to cause the opioid addiction crisis and to influence decision-making with political donations.

The judge presiding over Purdue's bankruptcy approved the bonus payments despite major pushback.

Mallinckrodt Pharmaceuticals also paid bonuses to top executives amidst litigation and bankruptcy.

This second article in the Corporate Bonuses series reported by Th...

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