Custom Search

Saturday, July 11, 2009

AIG Bonus Scandal Continues

American International Group, Inc.Image via Wikipedia

From The Hoss's Mouth

AIG has asked Kenneth Feinberg, the Obama administration's pay czar, to review a scheduled performance bonus payment of $2.4 million to 43 of its top-ranking executives. Money Magazine Hoss clearly recalls the public outrage that occurred in March when $165 million in retention bonuses was paid to top executives.

It is not clear that Feinberg, the person tasked by the Obama administration, with reviewing bonuses and retirement packages for the 100 highest paid executives at AIG, Citigroup, Bank of America, General Motors, GMAC Financial Services, Chrysler, and the defunct Chrysler Financial, has the authority to halt these bonuses. Some believe his mandate is only for current and future payments, not those delayed from 2008 (as these payments are) and therefore not only has no obligation to offer his opinion, but also no authority in the matter.

This would leave the decision up to AIG, and any resulting uproar would be laid squarely where it belongs: in the lap of AIG.

Money Magazine Hoss is of the opinion that if AIG executives would spend as much effort towards making AIG a viable company as they do in obtaining their retention bonuses, the tax payers may then have some hope in recouping the loans they made to AIG.

This smoke screen by AIG will not work. When honest hard working people are losing their jobs and life savings in increasing numbers there is no place for retention bonuses for already high paid executives. If these executives are that great, let them seek employment elsewhere. After all , it is these very same executives who caused the AIG financial catastrophe.

Stay on Track,

Money Magazine Hoss

Next Hoss Cents Free Financial Money Magazine Post: Interest Coverage Ratio
Return to previous post from AIG Bonus Scandal Continues.

Related Posts:

AIG Retention Bonus Scandal

AIG Too Big To Fail

Has The Economic Recovery Started?

G20 Summit

President Obama Trims Budget by $17 Billion

General Motors Files For Chapter 11 Bankruptcy

Financial Year in Review

Financial Crisis Deppens: Obama

Reblog this post [with Zemanta]


Post a Comment

Stock Ticker


The Hoss is not a financial adviser. This blog is a reflection of his personal opinion, experience and financial choices. For financial assistance, please consult a licensed financial services professional.

The contents of are provided for informational and entertainment purposes only, and should not be construed as advice. This material is not intended to provide, and should not be construed as providing individual financial, investment, tax, legal or accounting advice.

While the information shared on this website is believed to be accurate and reliable, the owners/operators of this website specifically disclaim all warranties, express, implied or statutory, regarding the accuracy, timeliness, and/or completeness of the information contained herein. Individuals leaving comments on this site are solely responsible and liable for the contents of their comments. Because this website is intended to provide general information only, you should discuss your specific needs with a qualified licensed financial services professional.

Links to other websites are for convenience only, and are independent from No liability is assumed for any inaccuracies in the information or for the content of any linked websites. No endorsement or approval of any other products, services or information is expressed or implied by any information, material or content referred to or included on, or linked from or to this website. No liability is assumed for incompatibility, non-suitability, viruses or other destructive/disruptive components on or from such websites.