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> Hmm, I hate this concept of "bonuses" because in my experience this isn't really how things work.

You're right. They're going to pay themselves the bonus regardless of this debacle.



Please explain to me the process by which executives decide their own bonus.


There are directors/executives that sit on compensation committees that also wind up deciding their own pay. And if you decide your own pay it isn't much of a leap to also decide bonus amounts and criteria.

Here's an article from Harvard Law Review about a lawsuit over this - you might be interested in the paragraphs in the "Shareholder Waivers" section: https://corpgov.law.harvard.edu/2019/09/18/setting-directors...

Some quotes: waive a shareholder’s right to sue the directors for violating their duty of loyalty regarding setting their own pay and For directors setting their own pay, the ruling suggested that a blanket waiver etc.




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