Nov
AIG Bonuses
Filed Under (Business, Politics) by Jason Monastra on 02-11-2008
I have been following the tragic decline of AIG since it made the headlines, waiting and hoping for a sign that shows the leadership change that is drastically needed to make the company move in the right direction. However with the bailout, additional funds, and increased timeline - we have seen nothing but some of the lowest aspects of financial leadership and economic responsibility. All this being done at the cost of the taxpayer with little to no oversight by our government which gave them the money.
First out, the $442,000 that was spent on the retreat and rewards event for the top sales people. This occurred right after the bailout plan was announced, spitting in the face of companies and people that are nickel and diming by during this time. Secondly the golf and hunting trips that have cost the company near $100,000 continue along the path of lavish expenditures which the company’s elite have become accustomed and have no issues continuing even with public funds. Lastly and most recently announced, the consulting dollars assigned to the former division chief who oversaw the company’s management of their credit derivatives. $34,000,000 in a one time payment plus $1,000,000/month is going out for these services.
Are there no laws. Recently, the State Attorney General of NY - Andrew Cuomo, has raised the flag that enough is enough. But even with his most recent requests, spending has not declined. There must be more than simply talk of action, but action required. People need to know that their public funds are not being wasted for the benefits of a few people. Personally, consulting and offering large payouts to someone that was instrumental in your downfall makes no sense. Are there are committees and government appointed experts in the field that should be assigned to a company such as AIG to oversee critical business operations should such a loan be made? Instead, we feed the process that has failed, offering little more than a bucket to move water from a sinking ship. How many buckets will they need next year?
