So they still want their bonuses…!

By | March 16, 2009

AIG will still pay nearly US$170 million into bonuses.

“(Liddy) told Geithner that some bonus payments are binding legal obligations of the company, and “there are serious legal, as well as business consequences for not paying.”

In wonder how much the staff would have got if the company had declared Chapter 11 Bankruptcy. Since the govt. bailed them out, I can’t see how these bonus claims have any merit. They’d have got NOTHING if the company had gone to the wall as it deserved.

After all, the stock is less than $1.00 so the company is in effect bankrupt anyway. Its debt obligations were so numerous that the government HAD to bail them out to stop the economy falling apart. So I can’t see how anyone can in good heart claim any thing from them. Really, you earned that… Come on!

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2 thoughts on “So they still want their bonuses…!

  1. John

    yea, that was pretty disgusting to hear about the bonuses. Looks like they'll be getting a nice 90% tax rate though!

  2. InvestorBlogger Post author

    I think that will do the trick. I know some people in AIG must deserve a bonus: not all the units lost money. But the CDO unit should all be fired, esp. those who were in the front line with the losses. It's a pity that they didn't have some loyalty to the company. Their loyalty seems to be placed squarely on the check!

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