Shulou(Shulou.com)11/24 Report--

On December 15, a team led by FTX's new CEO John Rey (John Ray) is liquidating the cryptocurrency exchange and reaping handsome returns in the process. It is reported that Ray's hourly salary is $1300, which translates to an annual salary of about $2.6 million.

Ray and his executive team are unlike other employees who work directly for certain companies. Instead, like bankers and lawyers dealing with bankruptcy proceedings, the new leadership team should be seen as a professional independent contractor. This means that, among other things, they will be paid immediately before FTX investors are compensated for their losses.

According to the latest court documents, Ray will be paid $1300 an hour, plus a "reasonable fee" to sort out "one of the biggest frauds in U.S. History." Assuming Ray works 40 hours a week for 50 consecutive weeks, plus two weeks of unpaid leave, his annual salary translates to the equivalent of $2.6 million.

In one bankruptcy case in which Ray was involved, he worked 156 hours over a two-month period, netting $120582, the equivalent of $770 an hour, and apparently paid more at FTX.

By contrast, when Mr Rey led Enron through the fraud recovery process in 2005 and helped the energy company through bankruptcy as chairman and chief executive, his annual salary was just $1.2 million.

Mr Rey has his own management team who have worked with him on at least three bankruptcy restructurings in the past 30 years, including Enron in the early 2000s, Nortel in 2009 and overseas shipping groups in 2014.

These executives include: chief executive Catherine Kathryn Schultea, who has worked with Mr Rey since Enron went bankrupt. She worked at Enron and subsequent bankruptcy companies from 1999 to 2014 and was promoted to Chief Executive Officer of Ray in 2008. The other two are Mary Cilia, chief financial officer, and Raj Perubhatla, chief information officer.

Schulta is also president and CEO of executive solutions company RLKS, which specializes in recruiting bankruptcy administrators. The bankruptcy restructuring team sent by RLKS oversees the administrative, financial and information technology work of the target company, which is a key part of rebuilding what Ray calls a "complete failure at all levels of the enterprise."

Four executives, including Ray, earn a total of $4225 an hour at FTX, which translates to $8.45 million a year. So far, FTX has recovered about $1 billion worth of assets, but it could take months or even years to complete all the liquidation. Enron's restructuring dragged on for more than a decade, and Nortel's litigation continued 11 years later.

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