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Armstrong Paid Executives a $4.8 Million Before Bankruptcy (1)

May 16, 2022, 8:45 PM

Armstrong Flooring Inc. paid its top executives $4.8 million just before filing bankruptcy, a move that was questioned by lenders.

Company Chief Executive Officer Michel S. Vermette and at least four other managers got part of their annual incentive payments early in order to try to keep them on the job, according to court papers and regulatory filings.

Such payments have come under fire from Congress, creditors and employees, who say the companies are evading bonus restrictions that judges can impose once in bankruptcy. A federal report found that in one recent year, 42 companies paid out $165 million ...