Claiming that executives get preferential treatment with firm assets is also irresponsible. The firm’s assets belong to the firm. The only assets an executive gets are her paycheck and stock options. In addition, why should an executive be penalized for negotiating an effective compensation package?
Mr. Conyers, who touted proposed changes to the bankruptcy code in his post, seems so eager to “change the ending” that he appears willing to interfere with the time honored law of contracts. Such an approach would be like feeding a bloodthirsty Tea Party fish chum. (Mr. Conyers should be taking a lesson or two from fellow Michigander Burt Stupak) Employees losing their pensions in bankruptcy is a reminder that they have not done their homework and have forgotten the lessons of Enron. Maybe Mr. Conyers should save the American people some time with his bogus legislation and simply give the unions courses on how to properly negotiate job saving labor contracts.