Generally you are correct, but knowing the ship was sinking- the CEO got the 'Board' to approve more bonuses...
"The firm, in the days before it filed for bankruptcy, sought board approval to pay three departing executives more than $20 million, according to Waxman."
Still not illegal, but obviously greed has no conscience...
Knowing this- Mr Paulson tried to keep CEO salary, bonus and golden parachute caps out of the $700 Billion bailout. Also- do you know who Obama's economics advisor is? None other than the former Fannie Mae CEO... They are all crooks...