Earlier quoted context omitted.
It's a simple contract with all conditions spelled out. The company pays.
Why would companies go to bat for these execs that are liabilities? Why not pay out the settlement and send Marty to Zenimax's St Helena division to prevent having to pay this sort of thing out again? (or worse, risk the damage of having someone not willing to take hush money like Mr. Gordon).
1. Companies are not alive. They are synthetic entities made up of individuals. They do not make decisions on their own. Their decisions are dictated by the decisions of the individuals inside of the company.
2. If I work in AP and receive a notice from a company executive to pay a contract that is signed by said executive (if they have clearance in policy to do so) and the person we're paying, we have all of the back end paperwork we need to pay it out, I'm paying it out. My job as AP is not to judge right or wrong. It's to process according to acceptable accounting practices, in general, and corporate policy specifically.
In other words, why do people act like a company is this mysterious creature able to sort right from wrong, and ignore the influence people like actual executives of that company can have on processes?