This isn't strictly BA-related, so if any Mods want to move it, please feel free to move it.

If a passenger is bumped or downgraded, then compensation is payable. However, does the compensation get paid to the passenger, or the person paying for the ticket. eg, if my company bought my tickets through an agent, does the compensation get paid to me?

The reason I'm asking is because some friends were re-locating over Christmas and their plane went tech, it was substituted for a smaller aircraft and they were encouraged (but refused) to fly in economy. They took the next day's flight, travelling in business. If they got $2,000 for the inconvenience, then they might have been more willing to travel in Y, but if the company got the $2,000 then they probably did the "right" thing.