STOP the $165M bonuses. If the AIG managers don't like it, LET THEM SUE!

By
Real Estate Agent with Alain Pinel BRE 01367196

Let's see...

AIG top executives claim it's a matter of contractual law and so they should get the bonuses because these were negotiated before the bailout. We're supposed to honor those contracts because we're a government of laws.

What a convenient thing for these crooks to say! Don't the American taxpayers now have 80% stake in this organization? Then we should be able to have a say so in such matters.

Here's a simple solution. Don't give it to them. And if they complain, tell them, SUE ME! Then see them try to explain why they deserve the bonuses.

Who are these incompetent managers? Why should we want to keep them? Why should we want to give them a bonus? They're the people who maneuvered this company on the brink of collapse, and nearly toppled our economy, and the international markets as well. Fire them! Better yet, put them in jail for dereliction of duty, for the business version of malfeasance, for mishandling of funds.

The current CEO was placed at AIG to put this company together. He should develop some balls to go against the old-time AIG managers who think they deserve the levels of executive compensation.

I am mad as hell and I won't take it anymore!

 

Related posts:

Let's put Madoff, AIG criminals, corrupt politicians in Sheriff Joe's Tent City in Arizona

AIG's $165 MILLION bonus to incompetent managers CAN'T BE STOPPED? Are they freaking serious? 

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  1. Kevin Robinson 03/17/2009 02:16 AM
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Rainmaker
317,924
Evelyn Santiago, Managing Broker Heart Realty Group, Inc.
Heart Realty Group, Inc.. - Oswego, IL
Passionate About Real Estate & Our Clients!

Well said - the convoluted logic that they use to substantiate the bonus to senior management  - "not to lose their top people".  Yes, those same top people that made the decisions that caused them to lose all this money....they want to keep them....fire them, jail them....don't keep them and by any sane reason don't give them any type of bonus.

If they really are good then have them prove it by cutting their salary 25% and if they can increase their group's profits by a substantial amount then give them a 5 to 10% increase depending on the amount they increased profits.

As someone who worked in various Fortune 500 companies throughout my life before coming into the real estate industry I know 1st hand what power and privilege will do to senior management.  Remember Robert Allen from AT&T...the telecom meltdown???? They were buying golf courses and country clubs with profits just to name a few of the excesses.

Perhaps the bonuses were tied to how much they charged to the company for escort services.....

I hope that our government will make a stand and not allow this to get by even though it's still the "who you know" not "what you know" and "what college or country club" you belong to that may get in the way.

I guess you hit a small nerve.  :)

 

 

Mar 16, 2009 02:38 PM #1
Rainmaker
3,300,611
Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Realtors - Luxury - Divorce

Bonuses should be rewards for accomplishments ....this is nuts !

Mar 16, 2009 03:08 PM #2
Rainmaker
710,643
Pacita Dimacali
Alain Pinel - Oakland, CA
Alameda/Contra Costa Counties CA

Evelyn,

I'm a product of the corporate environment, too. And it used to be that our bonuses were tied to how the company performed, or how much of a profit we made. So this is grating on me too (this is my third post on the subject). I am very angry that those managers even have the inclination to ask for their bonuses.

 

Mar 16, 2009 03:10 PM #3
Rainmaker
710,643
Pacita Dimacali
Alain Pinel - Oakland, CA
Alameda/Contra Costa Counties CA

Sally and David

That's what all sensible people say. Why doesn't AIG get it?

 

Mar 16, 2009 03:14 PM #4
Rainer
129,065
Justin Ukaoma
Vizion KC - Kansas City, MO
Kansas City Real Estate Investments

I'm surprised that this inforamation even got leaked out to the general public.  Usually information like this is kept behind close doors.  I wonder if Obamas's call to action on this matter is the real deal or just talk.

Mar 16, 2009 03:15 PM #5
Rainmaker
710,643
Pacita Dimacali
Alain Pinel - Oakland, CA
Alameda/Contra Costa Counties CA

Justin

Something of this magnitude doesn't just get leaked. Since the government has a huge 80% stake in this company ($173B worth in bailouts) it would be scruitinized every step of the way. People want to know where the money is going.

As for Obama's cal to action....if most of the people are outraged, regarding of their political affiliation, people will demand action. And God help the politician who doesn't express that outrage and promise investigation.

Words, words, words. We need Action! We need Results!

Mar 16, 2009 03:22 PM #6
Rainer
51,156
Omega Omega
Omega - Glendale, CA

Hi Pacita - Very good posts.  I too am mad as hell but it is incredible this issue has turned into the political blunder it has become.  You just know, people are on the sidelines thinking........."that's why they should not have been given a bailout in the first place"

Anyway, thanks for sharing.

Cheers

Mar 16, 2009 04:49 PM #7
Rainmaker
710,643
Pacita Dimacali
Alain Pinel - Oakland, CA
Alameda/Contra Costa Counties CA

Fred

The only good thing about this situation is that there is collective agreement among people from all walks of life that this is not right. And we're all demanding an answer.

Some heads will roll!

Mar 16, 2009 04:56 PM #8
Rainer
82,855
Debra Cernick
DeShazer Ryan Realty - Libby, MT

 

Right ON! Have to agree - well written arguments! Bravo Bravo! I believe that the MAJORITY agree with you- so let's tell our people who make the RULES!

 

 

Mar 16, 2009 07:13 PM #9
Rainer
140,489
c m
Colorado Springs, CO

I wholeheartedly agree, and am confused about how they planned to pay these "contractually required" bonuses if they didn't have taxpayer dollars to do it.  Would the employees have sued and gotten blood from the turnip?  Why did our gov't. turn over the $$$ without a stipulation that this was to be used for the "greater good" and not to line pockets of people who got the company into the mess it is in?  I'm confused...

Mar 16, 2009 07:23 PM #10
Rainmaker
710,643
Pacita Dimacali
Alain Pinel - Oakland, CA
Alameda/Contra Costa Counties CA

Debra and Cheryl,

Here's a blogger, Andrew Samwick, who thinks AIG is rewriting the dictionary. Here's a link to the full blog

He writes:

1) Bonus: My understanding is that a bonus is related to performance.  At a company that needed a federal bailout to remain afloat, what metric is being used to assert that the bonus payment is positive?  If there is no metric, then why is it called a bonus at all?

2) Retention: The bonus payments are sometimes referred to in the context of retaining these employees.  In what universe have the talents of those at AIG Financial Products just become more valuable?  Are there other financial firms just lining up at the door of AIG FP, begging these folks to come wreck their companies like they wrecked AIG?

3) Ownership: The Washington Post article notes that for its $170 billion, the government has an 80% ownership stake in the company.  And the "owners" are being told by the CEO that they cannot determine compensation levels of the "workers?"  This is yet another reason why the government should not "own" corporations.

This story is getting bigger and bigger. These folks have a lot of explaining to do!

Mar 16, 2009 07:41 PM #11
Rainer
38,924
John Guiney
Keller Williams Realty - Quincy, MA
e-PRO, CBR

Pacita - It's not just AIG. This problem is systemic and has proliferated under the previous administration to ridiculous levels. It must be stopped now and for the future. People need to be held accountable for their performance.

Mar 17, 2009 01:09 AM #12
Rainmaker
383,144
Kevin Robinson
Twin Falls, ID
Fractional Developer

It does seem a bit far fetched that they had to get a bailout and now expect bonuses.

Mar 17, 2009 02:16 AM #13
Rainmaker
710,643
Pacita Dimacali
Alain Pinel - Oakland, CA
Alameda/Contra Costa Counties CA

John --- regardless of which administration is in place, this must stop. Our legislators have a hand in the pockets of these corporations, and they are equally culpable.

See article on Amid AIG Furor, Dodd Tries to Undo Bonus Protections He Put In

 

Mar 17, 2009 04:21 AM #14
Rainmaker
710,643
Pacita Dimacali
Alain Pinel - Oakland, CA
Alameda/Contra Costa Counties CA

Kevin ---  and they have the gall to justify it! Bonuses should be given for doing a good job. These folks performed horribly!

Mar 17, 2009 04:53 AM #15
Rainer
145,279
Mike Hendren
Mike Hendren Photography - Cloudcroft, NM

Pacita, this is unconscionable that these guys still expect their bonuses after taking their company to the brink of failure and accepting over $100 Billion in govt. "bailout" money - OUR money I might add!  It ticks me off every time I see it!

Mar 23, 2009 01:20 AM #16
Rainmaker
710,643
Pacita Dimacali
Alain Pinel - Oakland, CA
Alameda/Contra Costa Counties CA

Mike -- I've been following this too. The trail of money and deceit gets murkier, with denials and lies (Dodd and Geithner). Someone said "connect the dots" and the dots lead to....

Mar 23, 2009 04:06 AM #17
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Pacita Dimacali

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