Friday, March 20, 2009

The AIG Bonus Plan in Black and White

It looks like the American public is seeing a little more transparency now. The U.S. House of Representatives has posted the AIG (AIG) 2008 Employee Retention Plan. From what I can tell, it appears that there is a huge minimum amount of bonus that would be paid no matter what the losses were. Am I reading this correctly? And what kind of a company would pay bonuses even if losses were generated? (Do you know how many companies there are that are not only NOT paying bonuses during losses but are laying off?) And why would you want to create a contract to retain employees who are generating losses? Do you remember what happened to the rogue traders at other companies in the past who ........... anyway I'm rambling.

What is the matter with AIG?

And by the way, whatever happened to the fraud investigation of AIG that started in 2007?

Disclosure: Author owns shares in AIG so author is allowed to gripe.


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