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AIG to pay $165 million in bonuses
Associated Press ^ | March 15, 2009 | MARTIN CRUTSINGER, AP Economics Writer

Posted on 03/15/2009 10:57:51 AM PDT by dvan

WASHINGTON – American International Group is giving its executives tens of millions of dollars in new bonuses even though it received a taxpayer bailout of more than $170 billion dollars.

AIG is paying out the executive bonuses to meet a Sunday deadline, but the troubled insurance giant has agreed to administration requests to restrain future payments.

The Treasury Department determined that the government did not have the legal authority to block the current payments by the company. AIG declared earlier this month that it had suffered a loss of $61.7 billion for the fourth quarter of last year, the largest corporate loss in history.

Treasury Secretary Timothy Geithner has asked that the company scale back future bonus payments where legally possible, an administration official said Saturday.

(Excerpt) Read more at news.yahoo.com ...


TOPICS: Business/Economy; Government; News/Current Events
KEYWORDS: aig; ripoff; taxpayers
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Having trouble maling ends meet? We should be working for AIG!
1 posted on 03/15/2009 10:57:52 AM PDT by dvan
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To: dvan

It’s amazing that these companies thought they could get in bed with government and sex would not be involved. If they are stealing our tax dollars, they have earned the additional scrutiny over their bonuses and executive retreats.


2 posted on 03/15/2009 11:00:05 AM PDT by mysterio
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To: dvan

Obama owns this, it’s happened on his watch, it wasn’t inherited.... Obama continues to FAIL.


3 posted on 03/15/2009 11:01:33 AM PDT by Gator113 (For America to Survive, Obama Must Fail.....)
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To: dvan

Yeah I wish I had an AG job. Post $100 billion loses, borrow $85 billion and give out bonuses? WTF???


4 posted on 03/15/2009 11:01:51 AM PDT by baltoga
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To: dvan
The really amazing thing is that they lost money and are still paying out bonuses. Bonuses for what?

Nice work when you can get it . . . .

5 posted on 03/15/2009 11:02:23 AM PDT by jeffc (They're coming to take me away! Ha-ha, hey-hey, ho-ho!)
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To: dvan

This is trivia.

1/10th of 1 percent of the bailout $buck$.

Once the feds gave them the $$$, they should not be micromanaging the AIG daily operations.

Of course the whole thing is a debacle.


6 posted on 03/15/2009 11:02:29 AM PDT by angkor
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To: dvan

Thaaaaats nice.


7 posted on 03/15/2009 11:05:51 AM PDT by Mad_Tom_Rackham (The inmates are now officially running the asylum.)
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To: angkor

Shouldn’t they reimburse the taxpayers first?


8 posted on 03/15/2009 11:05:52 AM PDT by Ev Reeman
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To: dvan

The ONLY bonuses these criminally incompetent BOOBS running and managing companies like AIG is a year or two off their prison terms if they coooperate with federal authorities.

The Masters of The Universe still feel it’s OK to thumb their very reedy, blueblood noses at the rest of us...


9 posted on 03/15/2009 11:06:55 AM PDT by Husker8877
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To: Gator113

Sorry, the Previous Admin didn’t want AIG to fail as well. This is R’s and D’s faults.

You’re a slave and you will continue to pay taxes and pay AIG.


10 posted on 03/15/2009 11:06:56 AM PDT by BGHater (Tyranny is always better organised than freedom)
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To: angkor

Agree...Obozo ‘s admin did not check the AIG contracts to make limitations on the money BEFORE they bailed them out. These bonuses are legal contracts that AIG can’t go back on.

Moreover, AIG doesn’t want to lose its possible best people...and I agree... we wnat to get our money back from the bailout.

Why aren’t Frank, Dodd etc getting hammered on THEIR contribution to this disaster. Its all just too maddening to watch anymore. I mean I don’t give flying F about these bonuses..when the whole problem was the Fannie Freddie fiasco that tanked my IRA!!!


11 posted on 03/15/2009 11:07:42 AM PDT by Recovering Ex-hippie (It's time for the grown ups !)
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To: jeffc

My guess is the people who wrote their bonus contracts were just as naive (assuming the company would only make money) as the people who wrote their CDS contracts (who assumed CDOs would never default).


12 posted on 03/15/2009 11:08:04 AM PDT by Arguendo
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To: dvan

They gotta get all the lucre off the ship before it gets swallowed by the ocean


13 posted on 03/15/2009 11:08:08 AM PDT by Unlikely Hero ("Time is a wonderful teacher; unfortunately, it kills all its pupils." --Berlioz)
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To: dvan
It only hurts when I sit down or stand up.


14 posted on 03/15/2009 11:08:11 AM PDT by Iron Munro (Suppose you were an idiot. And suppose you were a member of Congress. But I repeat myself.)
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To: dvan
AIG declared earlier this month that it had suffered a loss of $61.7 billion for the fourth quarter of last year, the largest corporate loss in history.

Without these obscene bonuses, their star executives and marketing pukes might quit, and cheaper employees would not be capable of losing quite as much.

15 posted on 03/15/2009 11:08:33 AM PDT by meadsjn (Socialists promote neighbors selling out their neighbors; Free Traitors promote just the opposite.)
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To: Recovering Ex-hippie
Agree...Obozo ‘s admin did not check the AIG contracts to make limitations on the money BEFORE they bailed them out. These bonuses are legal contracts that AIG can’t go back on.

The contracts were written before the bailout, so the government would have had the same problem they have with the automakers and their union contracts: as much as both the company and the government want to change them, the only way to do it without the agreement of the employees is through bankruptcy. And bankruptcy is evidently the very thing the government wants to avoid, giving the employees considerable bargaining power.

16 posted on 03/15/2009 11:11:14 AM PDT by Arguendo
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To: Ev Reeman

>>>>> Shouldn’t they reimburse the taxpayers first? <<<<<

That’s the problem with Socialism.

Everyone is a busybody, everyone has their hand out, and everyone “decides” who does what, when.

Now AIG will pay the piper, and so shall we.


17 posted on 03/15/2009 11:11:44 AM PDT by angkor
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To: dvan

But wait... “In soviet America, ALL people are equal”
Unless they work for AIG. They are just a “little” more equal than others.


18 posted on 03/15/2009 11:13:02 AM PDT by jprobst (Who is John Galt?)
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To: dvan

Just a thought...could it be this was in the agreement between zer0 and AIG to continue with giving out these bonuses to help promote the wealth envy the enemy loves to tout?


19 posted on 03/15/2009 11:14:40 AM PDT by Las Vegas Ron (FUBO, he says we should listen to our enemies, but not to Rush - and zer0 has already failed)
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To: dvan

20 posted on 03/15/2009 11:14:41 AM PDT by Leisler
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To: dvan

I hear congress pays Pelosi FREE PRIVATE JET fare. For her and her family and friends! 24/7-365 all expense paid!!!!


21 posted on 03/15/2009 11:14:56 AM PDT by rawcatslyentist (Glittering prizes, and endless compomises, shatter the illusion of integrity. Yeah!)
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To: dvan
AIG is one of the most protected. It insures the teachers union retirement and also CONgress. The will not fail until the very last.
22 posted on 03/15/2009 11:15:12 AM PDT by mountainlion (concerned conservative.)
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To: BGHater
Sorry, the Previous Admin didn’t want AIG to fail as well. This is R’s and D’s faults.

You’re a slave and you will continue to pay taxes and pay AIG.

BINGO!@!!!!

23 posted on 03/15/2009 11:15:47 AM PDT by org.whodat (Auto unions bad: Machinists union good=Hypocrisy)
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To: baltoga

If we believed the drive-by media alone, one would think that the whole lot should be thrown in the klink, based on the company as a whole, but that may not be the whole story. What did individual employees do for business performance that may have merited the bonuses (individual sales of insurance policies, annuities, etc).


24 posted on 03/15/2009 11:17:12 AM PDT by Schwaeky (The Republic--Shall be reorganized into the first American EMPIRE, for a safe and secure Society!)
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To: angkor
>>>>> Shouldn’t they reimburse the taxpayers first? <<<<<

I just love that phrase and would love to know when it has ever happened, with the exception of Ronald Reagan when he was governor of California.

25 posted on 03/15/2009 11:17:44 AM PDT by Las Vegas Ron (FUBO, he says we should listen to our enemies, but not to Rush - and zer0 has already failed)
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To: Arguendo
the only way to do it without the agreement of the employees is through bankruptcy

BS, the FBI can put all of the AIG scum in jail for fraud if they get off their ass's and go to work.

26 posted on 03/15/2009 11:17:54 AM PDT by org.whodat (Auto unions bad: Machinists union good=Hypocrisy)
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To: Recovering Ex-hippie

>>>>> Why aren’t Frank, Dodd etc getting hammered on THEIR contribution to this disaster <<<<<<

Barney Frank has recently stated that he always meant “we” (the government) should be building more apartments and affordable rental housing!

He “never” intended that we should actually follow his previous threats and rude incriminations and give free money and mortgages to people who could not in any way, shape, or form afford them.

Never! The stupid incompetents who simply are not as smart as Barney Frank (”I, Barney”) should never have let these “free markets” do what he told them to do or otherwise suffer from interminable FDIC, SEC, and FRB banking audits! Never!

No! Affordable rental housing! That’s what Barney ALWAYS (!!) meant! How could anyone think otherwise!?


27 posted on 03/15/2009 11:18:22 AM PDT by angkor
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To: dvan

One dollar paid out in bonuses for every $1030 of ‘bail out’ money received.


28 posted on 03/15/2009 11:18:36 AM PDT by ex91B10
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To: Recovering Ex-hippie
Agree...Obozo ‘s admin did not check the AIG contracts to make limitations on the money BEFORE they bailed them out. These bonuses are legal contracts that AIG can’t go back on.

Have you been asleep, the deals were made by Paulson and the jorge administration.

29 posted on 03/15/2009 11:19:49 AM PDT by org.whodat (Auto unions bad: Machinists union good=Hypocrisy)
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To: dvan
0 is whining about this ... but all he will do is whine.
30 posted on 03/15/2009 11:20:06 AM PDT by LiberConservative (0bama: Kenyan slang for "FAIL")
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To: Schwaeky
What did individual employees do for business performance that may have merited the bonuses (individual sales of insurance policies, annuities, etc).

Bingo.

You've gotten what most do not.

These people make their living off sales bonuses. Like commissions, they receive their pay when they make a sale.

That's how these companies run. Sales bonuses incentivize salespeople. DUH.

31 posted on 03/15/2009 11:20:32 AM PDT by what's up
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To: dvan
Taxpayers AIG to pay $165 million in bonuses
32 posted on 03/15/2009 11:21:01 AM PDT by bmwcyle (American voters can fix this world if they would just wake up.)
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To: BGHater

“This is R’s and D’s faults.”

I completely agree, but for the last 54 days, this has been Obama’s fish to clean.


33 posted on 03/15/2009 11:21:31 AM PDT by Gator113 (For America to Survive, Obama Must Fail.....)
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To: mysterio
It’s amazing that these companies thought they could get in bed with government and sex would not be involved. If they are stealing our tax dollars, they have earned the additional scrutiny over their bonuses and executive retreats.

But, let's say that taxpayer's money was not involved at all. Why would the executives of a company that LOST $61.7 billion in a single quarter be giving out $165 million of shareholder's money to themselves as "bonuses"?

Since most shareholders in most large public companies are Moms & Pops who have a small number of shares in mutual funds and no effective voice, executives in major companies use the assets of these companies as their own personal slush funds and gambling casino chips.

There is absolutely no fiduciary responsibility to shareholders practiced by large corporate executives nowadays and that does more harm to the survival of American capitalism than the harm that every Marxist and socialist on the Planet can do.

Before somebody jumps in and accuses me of being "anti-capitalist", I will point out that the "capitalists" are the SHAREHOLDERS. Being a corporate executive does not make you a "capitalist". Being a corporate executive merely makes you a white collar proletarian who works for the capitalist shareholders.

34 posted on 03/15/2009 11:21:42 AM PDT by Polybius
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To: mountainlion
I have read that lie before but to date I have seen on proof.

The insurance companies owned by AIG are doing well anyway and should be sold to get the tax payers money back.

35 posted on 03/15/2009 11:22:40 AM PDT by org.whodat (Auto unions bad: Machinists union good=Hypocrisy)
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To: rawcatslyentist

>>>>>> I hear congress pays Pelosi FREE PRIVATE JET fare. For her and her family and friends! 24/7-365 all expense paid!!!! <<<<<<

When she became Speaker she demanded (!!!) a Gulfstream V (aka “G5”) for her exclusive use, especially on weekends, but that demand was nixed.

IIRC she ultimately got some kind of free weekend use of a military transport jet, maybe not a G5 but something very close to it.

Can’t recall exactly, but it was widely reported in great detail last Fall.


36 posted on 03/15/2009 11:22:45 AM PDT by angkor
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To: dvan
Sorry, if these payments to employees are due to contractual obligations based on established performance criteria then tough. Nobody can or should do anything about it.

In the mid nineties I was a highly compensated corporate employee. My earnings were mid-high six figures but my base salary was $47k.

My efforts brought exponentially more revenue to the company than any other employee. After three years of this performance based compensation the bean counters balked and witheld nearly $350k. Their move was illegal. My employment contract clearly defined all aspects of compensation as well as performance levels. I had earned the money based on the plan that they created. They paid.

If nobody in the government explored this and mandated changes prior to giving AIG the bail-out cash then shame on them.

37 posted on 03/15/2009 11:23:13 AM PDT by wtc911 ("How you gonna get back down that hill?")
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To: dvan
There is a lot of hypocrisy in all of this. Due to idiotic regulations banks are shown to be in a bad shape, when (in many cases) they are not.

I presume some of us have mortgages and, subtracted from our incomes, balance sheet of many of us would be shown as negative.

Imagine the rule that, despite a good paycheck you bring home every 2 weeks or so, you must be considered bankrupt and no longer allowed to make purchases. No more supermarket trips and choosing what you eat - government now says it will be nachos...

38 posted on 03/15/2009 11:25:45 AM PDT by alecqss
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To: org.whodat

All 400 of these “executives” can be convicted of fraud? That comment was as dumb as I’ve come to expect from you.


39 posted on 03/15/2009 11:27:17 AM PDT by Arguendo
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To: Arguendo
Turn the FBI loose and see!!! Selling an instrument and then not living up to the terms of that instrument is fraud. And you silly statements are all I have ever expected of you.
40 posted on 03/15/2009 11:29:46 AM PDT by org.whodat (Auto unions bad: Machinists union good=Hypocrisy)
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To: dvan

AIG is paying out the executive bonuses to meet a Sunday deadline, but the troubled insurance giant has agreed to administration requests to restrain future payments.

Makes sense to me. They are only following Obama signing the omnibus bill with all the earmarks, and insisting this has to stop in the future.


41 posted on 03/15/2009 11:31:31 AM PDT by Lynda
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To: Polybius
But, let's say that taxpayer's money was not involved at all. Why would the executives of a company that LOST $61.7 billion in a single quarter be giving out $165 million of shareholder's money to themselves as "bonuses"?

Compensation of this sort is typical in the financial services industry. Notice that this is going to hundreds of employees, not just the top few executives.

In all likelihood AIG's losses are coming from old contracts still on their books, while the bonuses have to do with particular incentive targets individual employees met in their personal performances. Still, it wouldn't surprise me if the bonus contracts were poorly written and don't really account for the possibility of losses at the company.

42 posted on 03/15/2009 11:32:29 AM PDT by Arguendo
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To: org.whodat
Selling an instrument and then not living up to the terms of that instrument is fraud.

Companies break contracts all the time when they become financially distressed and declare bankruptcy. It's not fraud unless they knew they would be unable to meet the obligation when they made the agreement. And naive optimism is not fraud.

Maybe the FBI would be able to find some evidence of knowing fraud, but I highly doubt it and your claims are purely speculative.

43 posted on 03/15/2009 11:38:09 AM PDT by Arguendo
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To: angkor
...suffered a loss of $61.7 billion for the fourth quarter of last year, the largest corporate loss in history .... Article

"1/10th of 1 percent of the bailout $buck$. .... Once the feds gave them the $$$, they should not be micromanaging the AIG daily operations."

If you just capitalized a company as a shareholder and the executives LOSE 36% of your entire investment IN A SINGLE QUARTER and they then turn around and gave themselves BONUSES worth 1/10th of 1 percent of your entire investment, you'd be okay with that?

You would be O.K. with your executives awarding themselves ANY bonuses for "the largest corporate loss in history"?

The people who work for you must looooove you.

Objecting to ANY bonus for such an abysmal performance is not "micromanaging". It is common sense.

44 posted on 03/15/2009 11:38:35 AM PDT by Polybius
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To: Lynda

Now that is true!!!!


45 posted on 03/15/2009 11:42:28 AM PDT by org.whodat (Auto unions bad: Machinists union good=Hypocrisy)
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To: Polybius

Guess they told Timmy to go pound sand.


46 posted on 03/15/2009 11:42:32 AM PDT by Oldexpat
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To: Recovering Ex-hippie
Moreover, AIG doesn’t want to lose its possible best people...

"Best people"?

" ..... suffered a loss of $61.7 billion for the fourth quarter of last year, the largest corporate loss in history." ..... Article


47 posted on 03/15/2009 11:48:19 AM PDT by Polybius
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To: jeffc

Bonus incentives are a fact of life for a lot of salaried, exempt employess. A job is worth X amount. Companies pay less than X as a base salary and the bonus is only paid out for performance above and beyond a set baseline. More often than not the bonus money pro-rated for hours worked to achieve it is less than the base pay per hour.

Do away with bonuses and productivity decreases and top talent leaves.


48 posted on 03/15/2009 11:49:15 AM PDT by Rebelbase
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To: Recovering Ex-hippie

Wake up and smell the roses, the only way to get the attention of the elected arrogant theives is to throw them out of office.

Seeing how the voters are to lazy to even read what is going on, I don,t see any end in site until we all wake up one day with little or no liberities left and a goverment that is appointed by a select group with no voice from the voters who are no longer needed.


49 posted on 03/15/2009 11:50:54 AM PDT by chiefqc
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To: Schwaeky
What did individual employees do for business performance that may have merited the bonuses

I have no problem with people getting bonuses, having been the recipient of some pretty nice ones myself, but the report says "executives", people not normally involved with actually bringing money into company (i.e. selling a product).
I am focusing on the fact that they are paying bonuses to executives when the company lost money. Who in their right mind would write a contract allowing a bonus if the company lost money? It just stands to reason that if the company is losing money, than the "executives" are not doing their job correctly.

50 posted on 03/15/2009 11:54:44 AM PDT by jeffc (They're coming to take me away! Ha-ha, hey-hey, ho-ho!)
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