[Correction on 3/15/09 - the total amount of bonuses as reported in the media went up by $65 million.]Just as I finished a post on Robert Rubin's comments at a conference this past week about bonuses I read this headline on "The New York Times" Web site:
AIG to Pay $100 Million in Bonuses After Huge Bailout
What's more, according to the article, the bonuses will be paid to executives in the same business unit that brought the company to the brink of collapse last year.
U.S. taxpayers have already given $180 billion to save AIG, I guess in comparison to that $100 million is small potatoes.
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2 comments:
This is sick. Why in the world are we helping these companies that keep sending millions to people who do not know how to run a company? Furthermore, I fear this is just the tip of the iceberg--there are so many ways these funds are hurting 'average Joes' but benefiting those in high places. Look what Enterprise rent-a-car did to get bailout funds:
http://www.butasforme.com/2009/02/25/alert-enterprise-rent-a-car-may-have-fired-employees-as-fake-evidence-when-lobbing-for-bailout-money/
Pro - Yes, that's a good word for it. The compensation system in America is very much out of alignment. And this shows just how much.
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