Should Execs Return Bonuses They Don’t Merit?

Getting ill-gotten gains returned to shareholders remains the exception, not the rule.

Q. I own stock in a company that saw its share price plunge after previously hidden problems came to light, resulting in a restatement of earnings for two previous years. The CEO apologized and took “full responsibility” for not knowing about all this, but he and other executives haven’t offered to return any of the huge bonuses they got when the stock was flying high. Your thoughts, please.

SEE ALSO: The Money and Ethics Quiz

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Knight Kiplinger
Editor Emeritus, Kiplinger

Knight came to Kiplinger in 1983, after 13 years in daily newspaper journalism, the last six as Washington bureau chief of the Ottaway Newspapers division of Dow Jones. A frequent speaker before business audiences, he has appeared on NPR, CNN, Fox and CNBC, among other networks. Knight contributes to the weekly Kiplinger Letter.