Contact: John Hartgen
703-894-5935
BAPCPA LIMITS ON EXCESSIVE EXECUTIVE COMPENSATION
INEFFECTIVE, ACCORDING TO LATEST ABI QUICK POLL
October 19,
size='3'>2009 Alexandria, Va. — A majority of
respondents to the latest ABI Quick Poll found that “key employee
retention program” (KERP) provisions within the Bankruptcy Abuse
Prevention and Consumer Protection Act of 2005 (BAPCPA) were ineffective
in limiting excessive executive compensation. Fifty-four percent of
respondents disagreed that the KERP provisions within BAPCPA were
effective. Thirty-seven percent “strongly agreed” and 17
percent “somewhat disagreed.”
Twenty-four percent of respondents, however, thought that the KERP
provisions within BAPCPA were effective in limiting excessive executive
compensation. Twelve percent of respondents “agreed
strongly” and 12 percent “somewhat agreed.” Twenty
percent of respondents did not know or had no opinion on the issue.
The Quick Poll question was based on the amendment sponsored Sen.
Edward Kennedy (D-Mass.) to the 2005 bankruptcy overhaul designed to
stop chapter 11 debtors from handing out big bonuses to executives. The
provision has been a source of controversy since Kennedy inserted the
language. The KERP provision has thus far withstood several court
challenges.
ABI members and members of the public were welcome to submit their
response to the statement: “Sen. Kennedy is remembered for his
2005 KERP amendment to chapter 11. The law has been effective in
limiting excessive executive compensation.”
ABI’s Quick Poll is posted on ABI’s home page,
href='http://www.abiworld.org/'>www.abiworld.org. ABI
members and the public are invited to respond to a question on a timely
bankruptcy or insolvency issue. To access the results of previous ABI
Quick Polls, please visit:
href='http://www.abiworld.org/AM/Template.cfm?Section=Quick_Poll_Archive_2007&Template=/Quickpollarchive/Quickpollarchive.cfm'>
face='Times New
Roman'>http://www.abiworld.org/AM/Template.cfm?Section=Quick_Poll_Archive_2007&Template=/Quickpollarchive/Quickpollarchive.cfm.
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ABI is the largest multi-disciplinary, nonpartisan organization
dedicated to research and education on matters related to insolvency.
ABI was founded in 1982 to provide Congress and the public with unbiased
analysis of bankruptcy issues. The ABI membership includes more than
12,300 attorneys, accountants, bankers, judges, professors, lenders,
turnaround specialists and other bankruptcy professionals, providing a
forum for the exchange of ideas and information. For additional
information on ABI, visit
face='Times New Roman'>www.abiworld.org. For additional
conference information, visit
href='http://www.abiworld.org/conferences.html'>
color='#0000ff'>http://www.abiworld.org/conferences.html.