Where are they going to go?

Amazingly, A.I.G. is planning to pay $100 Million in bonuses after huge bailout. That’s correct: bonuses. Bonuses, as in: you did a good job, here’s a bonus. And why? According to the chairman of A.I.G.:

“We cannot attract and retain the best and the brightest talent to lead and staff the A.I.G. businesses — which are now being operated principally on behalf of American taxpayers — if employees believe their compensation is subject to continued and arbitrary adjustment by the U.S. Treasury…”

First, it shouldn’t be arbitrary at all. They should get no bonuses. None. Nothing arbitrary about that.

Second, on the issue of retention, I would ask the chairman: where are they going to go? Has he checked the industry lately? There are lots of people in the banking industry unemployed now. They would likely to be happy to settle with a salary.

Incredible.

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3 responses to “Where are they going to go?

  1. This is sick. Why in the world are we helping these companies that keep sending millions to people who do not know how to run a company? Furthermore, I fear this is just the tip of the iceberg–there are so many ways these funds are hurting ‘average Joes’ but benefiting those in high places. Look what Enterprise rent-a-car did to get bailout funds:


    http://www.butasforme.com/2009/02/25/alert-enterprise-rent-a-car-may-have-fired-employees-as-fake-evidence-when-lobbing-for-bailout-money/

  2. Re: retention … aren’t these the people that got the company into trouble? If so, why are they trying to retain them? In fact, shouldn’t they be fired without severence pay due to negligence?

  3. smartpeopleiknow

    Yes, the big bonus money is going to AIG FP, the ones who got AIG — and the rest of us! — in so much trouble.

    I think they should at least be fired, if not sent to jail if any fraud is found.

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