Booking.com to repay €65M Dutch State aid after €28M in bonuses for 3 US execs
"Company X got state aid and paid Y in bonuses" seems to be one of those cookie cutter news reports that pop up several times per day the past year. The titles seem to imply that state aid directly went to a few senior executives. Outrage, right?But why not look past the knee jerk reaction?1) In most cases I'm aware of, after digging deeper, you find out that the state aid is not for the company - it's for the employees. Running a business is no charity and if you have employees that are superfluous due to current market situation you lay them off unless the cost of retraining future employees is higher than paying operating expenses to have employees around that are not working as much as they used to. State aid can affect the decision by offloading expenses to the state, for employment safety.2) Bonus payouts may be for last year performance and not related to either covid or the state aid at all. Just because you have two large numbers within the same order of magnitude doesn't mean they are related. Bonuses may have been paid of regardless of state aid.