A comprehensive examination of the differences in compensation and turnover between domestic and multinational firms in distress from 2003 - 2008 was completed. An examination of three major theories of turnover is examined within the boundaries of distressed firms and support is found for the Scapegoat Theory as proposed by Huson in 2004. The results found no significant differences between total compensation levels between domestic and international firms. And with turnover rates of 26 percent and 51 percent, these groups have only board size as a significant impacting variable.