Arch “considered whether it was appropriate to establish goals that were negative,” and decided it was. Arch fell short of those negative targets, but exceeded its safety and environmental goals, and Eaves earned a bonus that was 93 percent of his target amount.

Peabody made a similar calculation and says Kellow would have earned a 100 percent bonus under its incentive plan. However, the board cut bonuses in half for Kellow and other executives.

Peabody says it made the cut to align executives’ interests with those of investors, who saw their shares lose 93 percent of their value. Because much of their pay was in stock, Peabody notes, executives got only one-third of their targeted compensation last year.

That’s small consolation for shareholders. “The executives lost opportunity,” says compensation consultant Eric Marquardt, who works for Pay Governance in Clayton. “Everyone else lost their investment.”

Marquardt says the companies are right to be concerned about retaining the executives. “Is it most important to look backward or to look forward?” he asks. “You need a stable team to help you emerge successfully from bankruptcy. You have to move forward, and you can’t continue to punish them.”