AIG To Shell Out Over $500 Million To Top Workers.

So they need to shell out a half of a billion dollars to keep employees (who should have been fired long ago) while continuing to ask for and take even more money from us, the taxpayers. This, of course, in addition to the fact that they continue to take expensive business trips to resorts:

American International Group plans to pay out $503 million in deferred compensation to some of its top employees, saying it must tap the funds to keep valuable workers from exiting the troubled insurance giant.

News of the payments to top AIG talent comes as the federal government has just put more money into saving the company from bankruptcy, beefing up the total public commitment to $152 billion. Meanwhile, members of Congress are questioning the company’s expenditures — including lavish business trips to resorts — during a time when taxpayers are on the hook for the bailout.

AIG’s troubles stem from bad bets it made guaranteeing and buying risky mortgage investments. On Monday, the U.S. government announced that it would have to expand its rescue of the company to nearly double the $85 billion loan it first provided in September when AIG was unable to pay billions of dollars in claims.

Somebody remind me why we continue to give them our money to bail them out when they don’t even stop to consider maybe, oh, cutting back on salaries and expenses for a while? These “top” executives they need to pay so much money to are the ones that got the company into this mess that we are paying for. Ugh. It never ends…

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Comments (9)

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  1. […] post by WP-AutoBlog Import var AdBrite_Title_Color = ‘0000FF’; var AdBrite_Text_Color = ‘000000’; var […]

  2. Miranda says:

    Outrageous! For now, that pretty much exhausts my coherent (and family-friendly) thoughts on this subject.

  3. Ridiculous isn’t it. All of this bailout nonsense needs to stop. Obama is on his way to approving more bailouts. Great.

  4. Joyce Lanzillo says:

    These Big Shots of all these companies that were so badly mis-managed should not be rewarded for doing a poor job. If they don’t like it let them leave the company. With the damage they did to AIG and others, the company will more than likely get someone to replace these people, for less pay and a fear in them to not overstep their bounds or they too will be out. NO ONE IS INDISPENSABLE!

    Our Country has a process in place for business “failure”. We need government to assist these very big companies with a structure to survive through that process not to help them circumvent the process.

    It is an outrage that good people all across this country are suffering and our government is focused on saving the big shots at the companies whose greed, arrogance or ignorance put their company and our country at risk. The logic seems to be that we cannot do nothing and let these companies fail. That is very true. But there are other options to simply pouring our money into the hole. Each American knows that when they fail they have to suffer the consequences. But our corporate entities seem to be exempt from this principle.

    I demand that my representatives start to value people more than corporations!

    The role of government with regard to the failed big businesses needs to be that of assisting with the orderly process of bankruptcy where by, the creditors of that company take ownership and continue to operate under the new ownership and new management. That is how our system works!

    There have been many excellent suggestions from the private sector of how to implement a plan of structured bankruptcy. Instead government seems intent on following the lead of Secty. Paulson. This man is not our savior. He is the person who failed to act when the crisis first began over a year ago. Secty Paulson is no different than the CEO’s of failed companies. He should not be rewarded with more and more power to ruin our Country’s economy.

    America has been awakened out of a long slumber. We are watching and will not support any politician who continues to favor big business over the individual.

  5. Another reason why I think that Darwinism no longer applies to big business in this country. It’s a poor economic decision over the long term to allow companies to survive if they are not economically fit (think survival of the fittest) to remain in business.

    Alternatively, this is another reason why I bought a few hundred shares of AIG when it hit a buck and a half. After all, the government owns ~ 80% AIG now… it’s not like they’re going to sell it anytime soon or allow them to go bankrupt.

    Maybe I’ll get a day spa invitation!!!

  6. Stephanie says:

    My husband and I were talking about some of the bonuses one company being bailed out was giving, and their excuse that they need to give big bonuses to keep their best employees. I told him considering the state of that industry, I don’t know how much of a problem that really is. The employees haven’t earned bonuses from what we can see here, certainly.

  7. Where is their sense of common decency or shame? Where is the public outrage? Why have such disgusting displays of greed become too common to elicit any response from a jaded citizenry?

  8. […] David at My Two Dollars is understandably upset that AIG will be paying bonuses to the “top” workers who got it int…. […]

  9. Ana says:

    Let them all go unemployed. Maybe they will know what it means. I’d love to receive a raise let alone a bonus. How the hell is this company taking tax payer money to pay for bonuses, especially to people who don’t know how to manage money?