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AIG Bonuses and Lockups: Add Another $454 Million!!

Posted by Larry Doyle on May 5, 2009 7:35 PM |

Do the letters AIG make you nauseous? Recall the uproar over AIG paying $165 million in bonuses last year? Well, get the barf bag ready because Reuters just reported that AIG also paid the following in bonuses in 2008, along with commitments in 2009:

. . . paid some $454 million in previously undisclosed performance bonuses to employees for 2008, the company said in answers to questions from a U.S. lawmaker that released on Tuesday.

Why were these bonuses not previously disclosed? AIG is a government owned entity!! What’s going on? Where’s the transparency and accountability?

. . . about $120 million corporate bonus pool designated for holding company employees and executives at subsidiary companies.

Why? Is this what government work pays these days? Where do I apply?

 The payments are separate from $1 billion in retention payments to entice employees to stay with the company.

Are you kidding me? With unemployment in the financial industry off the charts, and this firm having cost the government billions, the idea of paying retention bonuses is APPALLING!!!

Lastly, what is up with Reuters final statement:

The company also told Cummings [Representative Elijah Cummings, a Maryland Democrat] AIG’s bonus plans for 2009 were under development, “in consultation with the Federal Reserve and Treasury.”

What am I missing? What consultation is necessary? The consultation should be nothing more than, “when the company returns to profitability and Uncle Sam gets a return on his capital, we may consider paying bonuses. That may not happen anytime soon. Please get back to work . . . oh, have a nice day.”

Shouldn’t take more than 20 seconds, maybe 30.

What am I missing? What is America missing? Who is accountable?


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