Bonuses are a liability for building boards

March 24, 2009 11:51AM

Co-op boards, formerly eager for buyers who brought large bonuses to the table, now instead prefer buyers who are salary-based employees. Boards are now scrutinizing potential buyers’ assets and salary, not just looking at their bonuses. Boards now also expect buyers to have diverse investments, to avoid fallout from another Madoff scandal. And some boards are asking prospective buyers for updated financial information in case their financial situation has changed in recent months.

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