AIG Execs Caught Wasting Even More Of Our Money After Bailout.

My Two Dollars reader Chris email me this story last night because he knows how much this kind of crap bothers me! Turns out that the $440K spa trip that the AIG executives took after they took our bailout money wasn’t the only giant “screw-you” that they said to us – they also just took an $86,000 hunting trip:

“This was an annual event for customers of the AIG property casualty insurance companies in the U.K. and Europe, and planned months before the Federal Reserve Bank of New York’s loan to AIG,” company spokesman Peter Tulupman said Wednesday.

So you couldn’t have canceled the trip? If you remember, the other day AIG went around to blogs leaving the following comment:

Earlier today, AIG announced an important policy change – one that we wanted to be sure you knew about.

A short time ago, our Chairman and CEO Ed Liddy said that he has ordered the immediate cancellation of all outside meetings, conferences, and recognition events across AIG, except those that are required by law or that are deemed absolutely critical to sustain our ongoing business needs.

Given AIG’s commitment to our customers, business partners, regulators, and American taxpayers, coupled with the new and very different challenges our company now faces, we take these responsibilities extremely seriously. Their trust is critical to our success. We recognize the need to be sensitive about all company expenditures.

As we move forward, we will continue to focus our efforts to pay back the $85 billion loan from the Federal Reserve Bank of New York as quickly as possible.

Sure wish they had felt it was necessary to follow their own advice before they got caught wasting our money.

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Comments (9)

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  1. Matt says:

    I’ve subscribed to your blog for a while, but recently I have been finding myself disagreeing more and more. Yes, AIG went on a 440K retreat, but if you actually read more than just the headlines, you would see that only 10 AIG employees actually went. It was a reward trip for the top independent agents. Without perks like these for independent agents, AIG wouldn’t be able to be competitive with these tops agents. Like it or not, its the only way for a business to be competitive.

  2. david says:

    This was planned before the bailout and could have been canceled just to be politically correct in these times. It is bad form to keep spending money like this, when A. you could wait a while to do it, and maybe not go right after your company goes practically bankrupt and B. you were just given billions in taxpayer money.

  3. Tim says:

    People also need to understand, though, that these kinds of events have already been paid for in advance. If you do cancel, you are losing whatever deposits and reservations you have already paid.

  4. david says:

    Which would have been a lot less than $86K.

  5. Ben says:

    @Matt – I must respectfully disagree with you. While I know that many private companies do this, it’s obsurd to excuse the actions of AIG, just because it may or may not be something they do to reward their salespeople. It’s managing with reckless abandon like this that got them in the tight spot that they are now.

    @Tim – I must also respectfully disagree with you. Regardless of what they might have already paid in deposits, I am quite sure it’s far less than $86K. Don’t forget that this is OUR money that AIG is spending and living the high life.

    While I believe we should have let these companies go down in flames, what’s done is done. You better believe that I am not going to let my Representatives who voted in favor of this off the hook come Election Day.

  6. I’m with David and Ben here. I’ve participated in sales meetings such as this, and I can directly relate as a person who was rewarded as a out-performer who received a few freebie vacations in Cancun for my efforts.

    That said, our company was not forced to go begging to Congress b/c our managers were incompetent fools asking Joe Public for loans, destroying the value in our company stock, or taking us to the precipice of bankruptcy.

    Public relations nightmares like this have a way of staying with you, and AIG will be tainted for many years to come b/c of this day spa fiasco.

  7. Chris Hunter says:

    I sent David the link and I was simply blown away at the audacity of this company.

    And why hasn’t any government official stepped into the offices of this company and begun controlling what is done with our money?!

    This is ridiculous!

  8. […] wonder how long this will last but looks like AIG spent another $86,000 of our money, so says My Two […]

  9. […] wonder how long this will last but looks like AIG spent another $86,000 of our money, so says My Two […]