AIG Fesses Up to Handing Out More Non-Bonus Bonuses

AIG Fesses Up to Handing Out More Non-Bonus Bonuses

insurancenewsnet.com

Dec. 9, 2008 (Naked Capitalism delivered by Newstex) -- By way of background, we posted this on November 27:How can you give cash compensation to an executive, yet claim it is not a salary or bonus? You call it a "retention bonus," No, I am not making this up.Note that AIG (NYSE:AIG) chose to make this disclosure the day before Thanksgiving, selecting a time when it would attract the least notice. Not that it really matters. The talk about restricting executive compensation to bailout recipients has been just that, talk.It turns out that AIG was less than forthcoming in its pre-holiday revelation, and is now having to admit to more bonus payments during a busier news period. Did AIG really not have a good count two weeks ago, or did it think it could get cute and not admit to the full scope of executive largess? Or perhaps it decided, not having gotten as much flack as it feared, to expand the program.From Bloomberg: American International Group Inc., the insurer whose bonuses and perks are under fire from U.S. lawmakers, offered cash awards to another 38 executives in a retention program with payments of as much as $4 million.The incentives range from $92,500 to $4 million for employees earning salaries between $160,000 and $1 million, Chief Executive Officer Edward Liddy said in a letter dated Dec.

(visit the link for the full news article)

5 to Representative Elijah Cummings. The New York-based insurer had previously disclosed that 130 managers would get the awards and that one executive would get $3 million.œI remain concerned, as do many American taxpayers, that these retention payments are simply bonuses by another name, Cummings said in letter responding to Liddy.AIG, which received a U.S. rescue package of more than $152 billion, has been criticized for saying it will eliminate bonuses for senior executives while still planning to hand out œcash awards that double or triple the salaries of some managers. The payments are designed to keep top employees at AIG while Liddy seeks to sell units and pay back the federal government, which owns 79.9 percent of AIG.....Keeping the managers is necessary to maintain credit ratings and meet requirements in some reinsurance agreements, Liddy wrote. AIG disclosed the initial list of 130 managers in a September filing without saying how much most of the recipients will get. Another 38 people were added œsubsequently, according to Liddys letter, which didnt disclose the new recipients or say when they had been added.Yves here. What rubbish. Do you really think there are a lot of senior executive jobs on offer in the insurance industry these days? And have you ever heard of credit ratings being dependent on a particular manager staying in the saddle? CEOs get deposed without there being any ratings impact. This explanation comes perilously close to being a bald-faced lie. Back to the story:The list was expanded so AIG can retain people with œkey client relationships and who have a high œdegree of flight risk, Liddy wrote.

Take to the streets!

insurancenewsnet.com
(visit the link for the full news article)

We are coming perilously close to a revolution - one which will see the likes of these people being strung from street posts, right next to the politcians.

Why in God's name are these a**holes getting MY TAX DOLLARS as bonuses for a business that they f@#*ed up!?!? I EXCEL at what I do in the private sector and am in the top 10% of my company in sales and I am wondering how long it will be before I lose my job. As my income shrinks perilously close to the point of losing my home, these d*ckheads are getting bonuses - BONUSES - that dwarf my entire annual income!

Yes, dear friends, the time is nearing to storm the castle and dispatch these people. A storming of the castle is certainly in order!

Call out the instigators
Because there's something in the air
We've got to get together sooner or later
Because the revolution's here
And you know it's right
And you know that it's right

We have got to get it together
We have got to get it together now

Lock up the streets and houses
Because there's something in the air
We've got to get together sooner or later
Because the revolution's here
And you know it's right
And you know that it's right

We have got to get it together
We have got to get it together now

Hand out the arms and ammo
We're going to blast our way through here
We've got to get together sooner or later
Because the revolution's here
And you know it's right
And you know that it's right

We have got to get it together
We have got to get it together
Now

reply to post by warrenb


Anybody know if the material they use to make cash is strong enough to be woven into a noose?

reply to post by '___'eviant


Bills are composed of 25% linen and 75% cotton; red and blue synthetic fibers are distributed throughout the paper.

Could make a great noose with that

"Retention Payments"?

Like they are gonna rush out and get a better job in the current financial climate? The higher execs authorising this should be sacked immediately, without severance of any kind from the public purse.
Despite the bluster from politicians, these very same execs probably know that they'll get away with it for prior favours and campaign donations in the right places.

reply to post by warrenb


Oh, fabulous. Now, not to violate T&C in any way, but do we have anyone here who is good at weaving? Because I think you might have a lucrative position in the months ahead

reply to post by '___'eviant


Once the currency is "officially" worthless, we'll have enough paper for the task.

Date: Dec. 9, 2008
To:
My congressional representative
Directive:
Take the money back!
Signature:
Angry voter

(pass around)