Thursday, March 19

HuffPo: NY AG Cuomo Details AIG Bonuses

This made me angry all over again:

• The top recipient received more than $6.4 million;
• The top seven bonus recipients received more than $4 million each;
• The top ten bonus recipients received a combined $42 million;
• 22 individuals received bonuses of $2 million or more, and combined they received more than $72 million;
• 73 individuals received bonuses of $1 million or more; and
• Eleven of the individuals who received "retention" bonuses of $1 million or more are no longer working at AIG, including one who received $4.6 million;
Again, these payments were all made to individuals in the subsidiary whose performance led to crushing losses and the near failure of AIG. Thus, last week, AIG made more than 73 millionaires in the unit which lost so much money that it brought the firm to its knees, forcing taxpayer bailout. Something is deeply wrong with this outcome. I hope the Committee will address it head on.
We have also now obtained the contracts under which AIG decided to make these payments. The contracts shockingly contain a provision that required most individuals' bonuses to be 100% of their 2007 bonuses. Thus, in the Spring of last year, AIG chose to lock in bonuses for 2008 at 2007 levels despite obvious signs that 2008 performance would be disastrous in comparison to the year before. My Office has thus begun to closely examine the circumstances under which the plan was created.

My first job was in 1991. I worked in an office with my mom. Since then I have been without work for a combined total of about 2 years off and on in my life. My point? I still have not made $1 million. Also, any pay raises I receive are based off of a job well done - not profit-losing idiocy and greed. Furthermore, I have friends who have taken lieu days and pay decreases despite how hard they work everyday. But AIG executives - working or not - get bonuses for bringing down the financial system. Disgusting.

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