EPIPHANY

Your place for social commentary

AIG = Arrogance Incompetence and Greed!

By now everyone should have heard about the drama surrounding the bonuses distributed by AIG.  In short, the company that received billions in government bailout money recently turned around and awarded millions to their executives in the form of “retention bonuses”.  Why they would be trying to retain these idiots is beyond me, but I digress…

The bonuses were supposedly promised in early 2008, long before the company fell apart.  Even so, I would think that the company actually falling apart would be just cause to award no bonuses.  I remember working for a company that stopped awarding annual increases and instead went to a bonus structure that would give you up to 10% of your annual salary.  While it might sound like a better deal to receive the bonus, you wouldn’t believe the creative ways they finagled us out of our money year after year!  The bonus structure was so convoluted you needed an MBA just to figure out what you were entitled to.  They weighted the bonus based on how much profit the company made, how much free coffee we drank, and a bunch of other crap that was out of our control.    When it was all said and done you were lucky to walk away with 3%.

AIG is in ruins, but managed to pay out bonuses ranging from $1000 to 6.5 million dollars to its top executives.  I’m sorry but how does a company on public assistance garner the nerve to give anyone a bonus of 6.5 million dollars?  That’s like a person going into The Palm and trying to pay for their lobster with food stamps.  I’m just saying….did they really think this would fly?

Everyone is pointing the finger of blame.  Many say tougher restrictions should have been placed on what the companies could do with the money they received as part of the bailout.  I think I’m inclined to agree with that.  You can’t waste food stamp money on Gucci and Prada so yeah the government should be able to curb the handing out of bonus checks with taxpayer money.

Congress wants the names of every person that received a payout, but the current CEO is hesitant to give out that information.  Apparently people have been sending death threats to AIG.  It’s not “ha-ha” funny, but it’s a little ironic funny.  Taxpayers are not playing about these bailout funds!  Somebody sent a message to an AIG employee that said: all bonus recipients should be executed with piano wire around their necks.  Ouch!

So Epiphanyblog, what is your take on all this?  Some of the recipients of the money have been asked to return a portion of their payouts.  Anyone that received more than 100K got the call to pay back some of their bonus.  If it were you, would you give it back?  The people that got the small money, are probably lower level employees who bore no influence on the direction the company took, but consequently the good should suffer with the bad.  When the company is in the toilet, everyone from the receptionists to the VP’s should expect all bonuses to be placed on hold.  Having said that, should all AIG employees return the money, or only the big dogs?
JerzeeChick

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March 19, 2009 - Posted by | Finances, Opinion, Society

3 Comments »

  1. Interesting blog, I’ll try and spread the word.

    Comment by wonker | March 19, 2009

  2. I really don’t think anyone is going to return the money. I think an agreement will be made and then there will be so much political red tape and hoopla that it will never be returned.

    The republicans will continue to blame President Obama, whom by the way inherited this mess. Bush paid AIG prior to him leaving office. It will be a political show down and we the taxpayers will be left out in the cold as usual.

    Comment by Venom Patton | March 19, 2009

  3. I believe 11 of the employees that received bonuses left AIG, and some of the employees supposedly agreed to receive $1.00 for the yearly salary if the bonus was received. If I was one of the persons that left AIG after I got a huge bonus, my number would be changed and I would not know what the acronym meant. For those that received a $1.00 salary, they should have known something wasn’t right and should have refused it. It is amazing to me how they did not have some forethought before giving these bonuses, especially considering the current economy and the amount of money received from the government. Shame on AIG!

    Comment by Phyre | March 19, 2009


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