Senate Democrats are challenging OxyContin maker Purdue Pharma LP’s request to pay its chief executive a bonus that could total millions of dollars while the company is in bankruptcy, saying such an award would be offensive to the thousands of families harmed by the opioid crisis, the Wall Street Journal reported. Companies restructuring their affairs in chapter 11 commonly seek to pay executive bonuses either right before or during a bankruptcy to hold on to top management, though the practice has been controversial. Purdue CEO Craig Landau could get between $2.6 million and $3.5 million under an executive incentive program the company is proposing in the U.S. Bankruptcy Court in White Plains, N.Y., dependent on the drugmaker hitting certain performance targets. Five Senate Democrats sent a letter yesterday urging the judge overseeing Purdue’s bankruptcy, Robert Drain, to reject the proposed bonus, saying that Landau led Purdue during a period during which the company was accused by state and federal authorities of fueling the opioid crisis through misleading marketing of OxyContin. In response to the letter, Purdue said that stable leadership is critical to a successful reorganization and that Landau has kept the company profitable “in order to maximize value for claimants and the American public.” Judge Drain last year approved an earlier round of bonuses for Purdue’s executive team after the company agreed to reduce the size of the awards.
