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Small Business Think Tank [This Network is not currently active and cannot accept new posts] | | Topics
AIG OutrageViews: 212
Apr 05, 2009 6:37 pm re: re: re: AIG Outrage

Kathy Buck
Reg said: "One of the things that concerned me about the AIG bonuses is the total lack of information as to who and why the bonuses are being paid.
What if a recipient has, despite the financial crisis, gone well past the expected and done a superb job?
Should this person be denied his performance bonus? It IS possible for a company to be losing money while some departments are exceeding targets."

I've read the arguments stating that those who did do good work are a part of the workforce that needs to be retained thus compensated.

From the NY Times: http://www.nytimes.com/2009/03/16/business/16aig.html?_r=2&pagewanted=all

"The bonus plan established for the financial products unit before the federal government stepped in called for $220 million in retention pay for 400 employees for 2008. About $55 million of that was paid in December and the remaining $165 million was paid on Friday.

The retention plan also calls for another $230 million in bonuses for 2009 that are due to be paid by March 2010. Combined with the 2008 bonuses, that would bring the total retention pay for financial products executives to $450 million. But in response to pressure from Treasury Secretary Timothy F. Geithner, A.I.G. agreed to reduce its 2009 bonuses for the financial products unit by 30 percent.

The payments to executives in that unit are in addition to $121 million in previously scheduled bonuses for the company’s senior executives and 6,400 employees across the sprawling corporation."

Contract Law 101
These bonuses for selling X amounts of units were written before the government stepped in. The contract is with AIG, thus AIG owes the money to these employees. Which brings round the main point, that being; the bailout at the cost of taxpayers paying not only salaries but huge bonuses to "failed" company and the employees being justified.

In my mind - NO, the bonuses are not justified. The system was broke and these people chose to remain. The bail out a mere band aid for another large corporations lack of accountability. And now my tax dollars going for some SOB to drive a BMW and take a holiday in the tropics? NOT!

No sympathy here. Even a captain of a sinking ship knows when to jump.

Average median pay scale for AIG employees

AIG and all the other scum sucking greed monsters need to look around. Hundreds of thousands of people being laid off, cut and kicked to the curb. And you have the gall to demand MORE bonus payment from the very average Joe trying to figure out how to now provide for a family? I do not think our founding fathers meant for the taxation system to citizens to be a Savings and Loan for corporate shleps.

The entire support by our government to these greedy mongers reminds me of the the french famine under Louie the 16th reign. Antoinette muttered "qu'ils mangent de la brioche" here in the west better known as "let them eat cake", except brioche is NOT cake. Meanwhile Louie and Annie living high on the hog, I doubt eating brioche with their people.

The same callousness is being advocated - suffer the hard times, cut back -- oh BTW we are taking your money to pay others. History repeats itself - it was that French Monarchy's "rule" that led to a revolution led by the people, for the people.

I dare you - find me one government bobble head or bail out bone head that is living check to check, driving a beater car and not vacationing or even given up dining out to also get through these hard times. Yet- they request "we" all do to sustain others.

Gimme a break.

Private Reply to Kathy Buck (new win)

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