Berendt v. Bethlehem Steel Corp.

The bill seeks, inter alia, to hold directors of the Bethlehem Steel Corporation accountable for abuse of the company's bonus system, in paying exorbitant bonus to executives and heads of departments. The executives are directors of the company.

The bonus system is not impugned; the attack is upon its administration. The inequity of the bonus, not of its distribution, is the gravamen of the bill. The policy of stimulating effort, efficiency and accomplishment by extra compensation is as old as the company itself. From the beginning in 1905 to 1917, the board of directors sanctioned the bonus…