NHRA roles for bankruptcy

[Julie Jordan]

Originally Posted by KRatcliff

Thank you for responding and I should have narrowed it down to be more specific for the NHRA. I do understand about the lawsuit issues and that is why I somewhat referenced it with my "obligations" comment. I wrote that thinking about how Texaco filed bankruptcy many years ago to protect them from the lawsuit that Pennzoil won when Texaco gave Getty a get out of jail free card to sell to them instead of Pennzoil. I think Pennzoil was awarded something like $10 billion which made Joe Jamail famous (and rich). I digress.

Specifically on the NHRA it appears that compensation for upper management and the board of directors are their greatest ongoing liability. Why would the board want to put their organization into potential receivership or at the mercy of a bankruptcy judge that would determine their ongoing compensation as they are working through a reorganization? Their compensation would appear to be the first thing at risk of significant reductions by a judge.

Well I don’t think NHRA is filing bankruptcy, only rumors? Compensation is looked at in bankruptcy proceedings and adjusted if they are out-of-line for a similar sized business. Though some may think upper management of NHRA are over-compensated, when you compare to other organizations with similar revenues, I don’t think the compensation is out of the ordinary. I deal with businesses, see many W-2’s of CEO’s, etc. High 6 digits is the norm.