There's little incentive for executives to steer companies clear of the cliff, if past examples are to judge, since many ensure that executives are paid millions with golden parachutes in the form of bonuses or consulting fees, Tabuchi reports.
For instance, in the months before Texas-based oil company MDC Energy filed for bankruptcy eight months ago, the company paid its CEO $8.5 million in consulting fees, a debtor alleged in court. The company's debts exceed its assets by more than $180 million, and it would cost more than $40 million to clean up its wells if they were permanently closed. But "as of last week, dangerous, invisible gases were still spewing into the air," Tabuchi reports.
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