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| Apr 07, 2009 12:59 pm |
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re: re: : re: AIG Outrage |
Kurt Schweitzer
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Please keep in mind the difference between a private company and one that's publicly traded.
I own a private company. The money that founded and supports it comes from me. The profits it generates, after I cover expenses and employee wages, all belong to me. How I choose to spend (or invest) those profits is my business.
Likewise, how I choose to reward my employees is between me and them.
One thing that ANY business is expected to do is honor its contracts. If I am so foolish as to write an employment contract that says I'll give you $X if you're still working for me on December 31, I'd better do that.
One thing to note about a corporation is that an officer can make commitments that are legally binding on the corporation. The only recourse a shareholder has is to have the officer fired. Shareholders can't do this directly, it has to be done by the board of directors.
And even if the officer is removed, the obligation still has to be met.
I think this is the case for AIG. Bonuses were contractual obligations. The officer (CEO) was fired several months ago, but still the contractual obligations had to be met.
What else can anyone do?
Kurt Schweitzer
Urban Village ScootersPrivate Reply to Kurt Schweitzer (new win) |
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