FEI Weekly

July 20, 2020

The loophole bankrupt companies are using to pay execs big bonuses.

Thousand to Walk Off Job in 'Strike for Black Lives'

Axios

Dubbed the “Strike for Black Lives,” strikers are calling on corporate leaders and elected government officials to use executive and legislative power to guarantee people of all races can thrive. Demands includes raising wages and allowing workers to unionize to negotiate better health care, sick leave and child care support. Organizers expect tens of thousands of union workers to join social and racial justice advocated across more than 25 cities.

Golden's Next Move

Accounting Today

Russell Golden, who just completed his term chairing the Financial Accounting Standards Board (FASB) at the end of June, will be chairing a newly formed independent Assurance Quality Advisory Committee at PwC. The committee will be providing input to PwC vice chair Wes Bricker, who is also the firm’s U.S. and Mexico assurance leader. Bricker came to PwC from the SEC and worked closely with Golden for years on setting accounting standards.

The Loophole Bankrupt Companies are Using to Pay Execs Big Bonuses

Reuters

Nearly a third of more than 40 large companies seeking U.S. bankruptcy protection during the coronavirus pandemic awarded bonuses to executives within a month of filing their cases, according to recent analysis. Under a 2005 bankruptcy law, companies are banned, with few exceptions, from paying executives retention bonuses while in bankruptcy. But the firms seized on a loophole by granting payouts before filing. Firms paying pre-bankruptcy bonuses know they would face scrutiny in court on compensation proposed after their filings but the trustees have no power to halt bonuses paid even days before a company’s bankruptcy filing, allowing firms to escape the transparency and court review.

This 401(k) Perk May Be Disappearing

Motley Fool)

The logical resolution for governments facing budget deficits is to raise taxes. Even with the potential for rising taxes, keep saving in your 401(k) and earning your free employer match. But also protect yourself against future tax changes by building up your tax-free sources of retirement income. Having taxable and nontaxable income at the ready gives you flexibility to manage through any tax hikes that might come your way.

3 Skills Leaders Will Need Post-COVID

Forbes

Here are the top three skills that will be required of leaders during and after Covid-19: 1. Leaders must build strong and cohesive teams, even with employees working remotely. 2. Leaders must navigate and manage change quickly and appropriately while remaining focused on the larger task at hand. 3. Leaders must remain culturally sensitive and emotionally aware within fast-moving, complex work environments.