Peter DeChiara quoted in Wall Street Journal article on management bonus plans in bankruptcy

September 5, 2019

On September 5, 2019, the Wall Street Journal reported that the court administering the Chapter 11 bankruptcy of California utility PG&E had denied the company’s proposed multi-million dollar bonus plan for its top executives. The article, seeking comment by experts not involved in the case, quoted CWS partner Peter DeChiara saying that it was “gratifying to see that the PG&E judge scrutinized the bonus plan and turned it down.”  “Sometimes judges will do that,” his quote continued, “but more often than not those plans are approved. It’s a shame because typically, by the very nature of the bankruptcy, the stakeholders including the rank and file workers are sacrificing, taking a hit. While other stakeholders are suffering, management is getting bonuses.”

Peter DeChiara represents unions and benefit funds in employer bankruptcy cases and edits the firm’s blog on bankruptcy labor issues:

This blog is for informational purposes only and is not intended to provide legal advice. The blog should not be used as a substitute for competent legal counsel by a licensed attorney. While we try to provide accurate information, we make no commitment to our readers that the information on the blog is accurate, complete or current. Nor is the blog intended to create an attorney-client relationship between Cohen, Weiss and Simon LLP and any reader of the blog. Creation of an attorney-client relationship requires the express agreement of the firm.

Enter your email address below to receive notifications of new posts.