Elizabeth Warren
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Warren Elizabeth Warren
Elizabeth Warren, a professor at Harvard Law School who specializes in bankruptcy, said that Chapter 11 was traditionally about sharing the pain, but now it is more a game of feast and famine, starving the shareholders and creditors while the management team grows fat on big salaries. She also said that a trend of excessive pay for officials at bankrupt companies is a troubling result of the lack of pushback from other stakeholders. The lawyers and management team are running the show. ''Chapter 11 was traditionally about sharing the pain,'' said Elizabeth Warren, a professor at Harvard Law School who specializes in bankruptcy, ''but now it is more a game of feast and famine -- starving the shareholders and creditors while the management team grows fat on big salaries.'' How fat? Warren of Harvard said a trend of excessive pay for officials at bankrupt companies is a troubling result of the lack of pushback from other stakeholders.