rssAIG Still Paying Bonuses to Top Execs
Friday, November 28, 2008 at 11:55 am
- 10 Comments
I guess the folks at AIG, the insurance company that has gotten tens of billions of dollars from the government to keep it afloat, didn’t listen very closely the other day when President-elect Barack Obama mentioned in an interview that top business executives should forgo their bonuses in troubled times.
Via Naked Capitalism, the Financial Times reports that on the day before Thanksgiving, AIG revealed it will give millions of dollars in “retention bonuses” to 130 key executives. The timing gets even more peculiar: It came one day after AIG said that it would restrict salary and bonuses for top executives.
From the Financial Times:
An AIG spokesman said on Wednesday that retention bonuses were different from the annual bonuses included in Tuesday’s statement … The company said at the time that retention bonuses would be necessary to maintain continuity and value at various AIG units.
“Retention bonuses are a better alternative for the repricing of option awards so long as they are reasonable, fully disclosed and truly needed to retain talent,” said Richard Ferlauto, director of corporate governance and pension investment at the American Federation of State, County and Municipal Employees union.
“But in this market we don’t see much clamor for executives who made big bets, cannot make risk and were paid more than they are worth,” he added.
Yves Smith at Naked Capitalism agreed;
Do you really believe, with massive deleveraging and all sorts of big financial firms, including insurers, teetering, that AIG executives have great employment prospects these days? But the bigger issue, as far as I am concerned, is the misrepresentation, trying to claim that AIG was forgoing significant senior level comp, only to learn that they define terms a bit differently than the rest of the world does.
I suspect this little development isn’t going to go unnoticed. AIG may have a very Black Friday ahead.
10 Comments
Comment posted November 28, 2008 @ 9:37 am
Dear AIG,
You may give money to whomever you choose. SO CAN I. I WILL NEVER GIVE YOU A DIME OF MY BUSINESS. EVER. NEVER. No matter what the alternative costs me. NEVER.
Comment posted November 29, 2008 @ 7:23 am
IT IS CALLED CORPORATE GREED AND WILL ALWAYS BE AS LONG AS THERE IS MAN. THE ONLY WAY THE LOW MAN WILL GET ANY BENEFIT IS IF BY SOME PROGRAM LIKE GRANTS, UNEMPLOYMENT BENEFIT EXTENSIONS,WILL PUT THE MONEY IN THEIR HANDS.
Comment posted November 29, 2008 @ 9:43 am
Why don't they get it? We see through the spin, the lies……all for justifying giving millions of dollars to friends…..I say let AIG fail…
Comment posted November 29, 2008 @ 11:25 am
im tired of all this treasury shooting from the hips and the resulting http://rawdawgb.blogspot.com/2008/11/shoulda-coulda-woulda.html' rel=”nofollow”>shoulda, coulda, woulda
Comment posted November 30, 2008 @ 8:45 am
If these top executives are so good, why is this company needing to be bailed out?
Comment posted November 30, 2008 @ 2:11 pm
Perhaps it is time for the same ol' business-as-usual, pin-stripe-suited leaders, the ones who adamantly espouse and religiously exemplify an apostate's creed of greed, to be replaced by new leadership.
Too many leaders of this patently unsustainable culture of avarice evidently define the culture's efficacy by the endless accumulation of material possessions; by the unbounded acquisition of more money, money, money, money; by recklessly overconsuming and relentlessly hoarding limited resources. They demonstrably declare to all the world that greed is good.
Are we not members of a culture that worships consumerism? Are the products of greed nothing more or less than the objects of our idolatry?
Are the pin-striped suits, fleet of cars, chauffeur, private jets, McMansions, distant hideaways, secret handshakes and exclusive clubs…… all “signatures” of success in a culture promoted by the 'goodness' of greed?
Consider for a moment what perversity greed has wrought.
Steven Earl Salmony
AWAREness Campaign on The Human Population,
established 2001
http://sustainabilityscience.org/content.html?c…
Comment posted March 15, 2009 @ 3:43 am
I see no need for more and more bonuses no matter what you call them I call it greed and such a great company that's failing because of your greed.
I don't know about others but someone needs to watch over your accountant.
Comment posted March 15, 2009 @ 10:19 pm
It absolutely stupid to claim that bonuses are part of a contract, all bonuses are given out only bases on the performance of a company, there should be no bonus at all when a company is losing money.
Comment posted March 16, 2009 @ 9:24 pm
Let them take their blood money from the taxpayers. The public still has one very capitalistic tool at the ready, no customers=no money. ALL AIG clients should threaten to withdraw their business unless these “retention awards” are eliminated. Guess what, if somebody wants to leave their job position, let them. There are 1000's of hungry MBA's in line waiting for these positions, and will do anything to get the work. Management has always had the thought that blue collars are just cogs to be replaced, displaced, and eliminated at a whim. Sucks when management realizes the same theory fits them isn't it. They have to hide that dirty little secret, or else the big money pay cheques will disappear. That explains why management from all business sectors are “circling the wagons”. Their closed elitest culture is nothing more than smoke and mirrors. Look, see the wizards hiding behind the curtains, as the sun sets in the Emarald City, the munchkins are set to revolt.
Comment posted March 17, 2009 @ 4:24 am
Let them take their blood money from the taxpayers. The public still has one very capitalistic tool at the ready, no customers=no money. ALL AIG clients should threaten to withdraw their business unless these “retention awards” are eliminated. Guess what, if somebody wants to leave their job position, let them. There are 1000's of hungry MBA's in line waiting for these positions, and will do anything to get the work. Management has always had the thought that blue collars are just cogs to be replaced, displaced, and eliminated at a whim. Sucks when management realizes the same theory fits them isn't it. They have to hide that dirty little secret, or else the big money pay cheques will disappear. That explains why management from all business sectors are “circling the wagons”. Their closed elitest culture is nothing more than smoke and mirrors. Look, see the wizards hiding behind the curtains, as the sun sets in the Emarald City, the munchkins are set to revolt.
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