AIG Bonuses Back in the Spotlight Want consigliere's approval first ( Who's the Consigliere )

NBCConnecticut ^ | Jul 10, 2009 | N/A

[raybbr]

Remember the AIG firestorm?

The company's Financial Products division, based in Weston, Conn., was to blame for the business practices that sent the company south. The feds stepped in with a $180 billion bailout. And then we figured out that the company had to give out $450 million in bonus payments to those same employees who may have caused the mess?

Now, hoping to stem any further public outrage, the company is asking the Obama administration (basically, its financial consigliere) for permission to go ahead and make those bonus payments.

The retention incentives, as the company puts it, are an important factor in keeping people on-board who could most effectively unwind the tangled web of the Financial Products division.

This week, 40 AIG executives, many in Connecticut, are due more than $2 million in bonuses.

AIG isn't required to get the government's permission, since the argument could be made that they're legally required to honor their contracts. But the government's seal of approval wouldn't hurt at all.

[pnh102]

As long as AIG remains on the dole, then any salary over $0 a year to any executive is a waste.

Perhaps AIG should pay back the money it stole from us and become a private company again, then it can pay its executives whatever it wants to. Amazing how that works.

[theknuckler_33]

"are an important factor in keeping people on-board who could most effectively unwind the tangled web of the Financial Products division."

They're afraid they'll just walk away in this job market if they don't get their bonus'? I don't think so. I haven't gotten a raise in 2 years (my entire company, not just me). I don't care about Obama, the hell with these bonus'.

[REPANDPROUDOFIT]

You sure find it easy to nullify an income payment that was promised to someone else. It isn't evil of these employees to expect the payments that were promised to them. It also isn't evil to be an "executive".

If you argue that these payments are wrong, then also argue that the UAW bailout mess is wrong. Somehow, Obama saw it as charitable to saddle the American people with the UAW's "PROMISED" payments. We couldn't let those union workers down now could we?

If they go after AIG for these bonuses, they better do the same for Goldman Sachs, Fannie and Freddie and (maybe) even the UAW.

[REPANDPROUDOFIT]

The company's Financial Products division, based in Weston, Conn., was to blame for the business practices that sent the company south....... then we figured out that the company had to give out $450 million in bonus payments to those same employees who may have caused the mess?

Aaaargh! I hate blanket statements like this! As if every financial company in the world didn't have a division that was dealing in derivatives! You can't just single out these very employees as being responsible for the tanking of AIG! Well, I guess you can if you work for NBC!