AIG Spends Millions in "Bonuses"

[manasecret]

Maybe they should have been fired instead of been given performance bonuses when their company just lost the most money in corporate history? The argument for holding on to great talent doesn't work when that great talent ran the business into the ground.

At what point were the bonuses written into their contract, before or after the news that they might be getting billions of dollars in bailout money?

Were any of the bonuses given to individuals who decided to invest in the derivatives (or whatever) that ruined the company?

I'm not saying that giving out bonuses is a bad idea to those who deserve it even for AIG, but to me there is a huge chance of fraud against me and all others, the taxpayers paying the bonuses, in all of this, and so it definitely warrants investigation.

Keep in mind, I don't have all the information on these contracts, does anyone have that?

[Professor S]

Originally Posted by manasecret

Maybe they should have been fired instead of been given performance bonuses when their company just lost the most money in corporate history? The argument for holding on to great talent doesn't work when that great talent ran the business into the ground.

Even if they fire them they are still obligated to pay thje bonuses. It's in their contracts.

At what point were the bonuses written into their contract, before or after the news that they might be getting billions of dollars in bailout money?

I'm not positive, but knowing the nature of business contracts, before.

Were any of the bonuses given to individuals who decided to invest in the derivatives (or whatever) that ruined the company?

I'm sure there were, but thats irrelevant. A contract is a contract. You can argue whether or not AIG should have offered them to begin with, but thats beside the point. No one is arguing that AIG is a great company.

I'm not saying that giving out bonuses is a bad idea to those who deserve it even for AIG, but to me there is a huge chance of fraud against me and all others, the taxpayers paying the bonuses, in all of this, and so it definitely warrants investigation.

Keep in mind, I don't have all the information on these contracts, does anyone have that?

Agreed, but from what I've read and heard, those contracts are pretty tight and AIG would be legally culpable to pay them. In the end, this is quibbling over small points. We're arguing over millions when TRILLIONS are being thrown around. A Trillion is comprised of a million millions, and we're obsessed over 170 of them. Its' all a distraction.

[BreakABone]

And it seems as all those execs were loyal to the end, as 11 of them left the company after receiving their bonuses.

that AIG paid 73 employees bonuses of more than $1 million each.

Cuomo also wrote that 11 of the employees no longer work for the company.

http://www.cnn.com/2009/POLITICS/03/...ses/index.html

I agree with Prof though, at this point it is just a terrible idea to harp on it, I know the American public wants justice, but I hope this giant flashlight on the business world helps in getting in more regulation to these practices as no one seemed to have an issue with it until they started taking money.

Maybe a fail safe clause so that bonuses aren't paid for under performing members or in environments like this which I hope never happens again.