Bonuses For AIG Executives

In a weekend dedicated to college basketball tournaments, there was one "upset" that trumped them all: AIG was giving its executives bonuses.

In a weekend dedicated to college basketball tournaments, there was one "upset" that trumped them all: AIG was giving its executives bonuses.

Yes, this is the same AIG that lost $62 Billion last quarter.  It's also the same company the government has bailed out four times, to the tune of $173 Billion.   AIG, though not a bank, engaged in some the same risky financial behaviors that brought the subprime-happy economy to its knees. How does that kind of performance constitute a bonus?

AIG claims the bonuses are required by contract, written in before the economy went haywire.  Can anything be done stop the bonuses? Angry lawmakers promise to find out.  Rep. Barney Frank, Chairman of the House Financial Services Committee, said on the Today Show Monday that officials did not attach enough conditions to bailout funds given to AIG. 

What do you think? These are unprecedented times.  Should lawmakers be able to change the rules on how AIG uses its bailout money, now that we know some of its going to the pockets of executives?  Should the contract AIG had with its workers be honored? 

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  • by john Location: wilson on Apr 18, 2009 at 07:45 PM
    what? what is a bonus, and where are the tater tots
  • by Aitana Location: WH Robinson on Mar 25, 2009 at 11:41 AM
    Our school is cool because we have cool teachers and kids. Jamie and Tyler are 2 of the coolest kids in the 4th grade. Please come to our school and interview THE COOL KIDS!!
  • by kierra Location: chocowintiy primary on Mar 24, 2009 at 01:54 PM
    i think my school is cool because everybody is nices coolllllllll
  • by Laura Location: PA on Mar 19, 2009 at 06:19 AM
    Aren't bonuses based on performance? If the company lost so much money, why are bonuses being paid? Our reps should have anticipated that AIG might do something like this and put in restrictions. Looks like our reps are also not doing their job.
  • by Jackson Location: Deep Run on Mar 17, 2009 at 02:01 PM
    I think the government has to take this one on the chin. They gave money without strings. They lost $60 billion in the 1st quarter so without government help they will be bankrupt soon anyway. Obama and the Democrats are trying to get the egg off of their face by going after the executives. But when government gets involved in private enterprise, we have what is known as communism or socialism. So call you senators and tell them to lay off and do not give them any more money.
  • by Gator Location: NC on Mar 17, 2009 at 02:58 AM
    If I remember right, Rep. Barney Frank voted for the bail out. The Dem's were the majority in the House and Senate. And you wonder why this is happening.
  • by ace on Mar 16, 2009 at 01:27 PM
    You must remember the first part of 2008 was a boom. It was the last quarter that the economy went to ____ in a hand basket. The bonuses are probably based on this time period. I would suggest changing the future contracts to be more inline with the yearly economy and how much money the goverment must inject into the company. Remember the top executive of a corp. are like the congress and senate. No matter what happens, it will be somebody elses fault and they will be coming out of it smelling like a rose.
  • by Tim Location: Vanceboro on Mar 16, 2009 at 01:02 PM
    My only problem with this is; if the company was in such a shambles that they had to have government monies to avoid bankruptcy, which executives did a good enough job to deserve a bonus in the first place?
  • by william Location: rocky mount on Mar 16, 2009 at 06:26 AM
    This sort of thing has been going on for ages. The wealthy look after each other at the expense of us little people. What can we do? The wealthy provide us with jobs to earn money and places to buy the things we need to survive. If they don't get their way, they can make it very difficult for the rest of us down here to make even a meager living. We've become way too dependent on what others provide for us instead of being capable of making it on our own. These people have already squandered away billions of dollars so why not give them more? I'm sure they'll do a better job with it this time.

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