Credit Crunch

Ok, so I know naff all about accounting and economics but; How can a company that pays its boss a bonus of 12 million quid one year, can go bust the next year? Whatever happened to saving for a rainy day? At best this looks like greed and incompetence, and at worst it smacks of serious fraud. In the late eighties and early nineties, I worked for a small company that saved its profits during the boom, and then managed to survive during the recession. Short-term-ism is the way to go eh? (is that a word? - It is now!) The fat cats are still around!