[invalidOrTaken]

It's an interesting failure mode I've only recently started to see clearly---before bankruptcy, shareholders are comfortable, thinking, "w/e, if the company goes bankrupt, our management gets nothing." But they fail to realize that if the company does go bankrupt, or close to it, it will be hard to find a replacement for someone with that level of knowledge of the firm. So the initial implied threat is now toothless.

[xkcd-sucks]

The "knowledge of the firm" would make sense if execs were promoted internally, but most are external hires who may not even have experience in the industry