Insurance giant AIG, fresh off getting another round of federal taxpayer money, says it plans to pay out $503 million in deferred compensation to some of its top employees.
The company says it needs to use the bailout funds to keep valuable workers from exiting the troubled insurance giant, according to the Washington Post.
Uh, are they really that valuable if the company found itself needing gazillions of dollars from Uncle Sam? And just who would want to "steal" the folks who help put a company in such straits?
Meanwhile, reports the paper, members of Congress are questioning the company's expenditures (blogged about here) during a time when taxpayers are on the hook for the bailout.
You think?
J Zodiaco
I am an A.I.G.annuity client and my 5 year contract had matured on 2/3/09. I had my local bank send; in advance of the said maturty date to A.I.G.to roll over my wifes and my account. At this writing,after four phone calls . All they keep telling me is checks in the mail!Anyone out there getting the same run around and/or what course of action help is available to get my money. As I see it they are holding our money illegally and it may be on the edge of fraudulent business practices and/or plain criminal larceny
Jan Dillaha
The AIG situation is no surprise. WSJ published a story on this problem before the bailout dust had settled.
What is surprising is that as a nation who has no respect for it’s duly elected legislators we trust them to watch over AIG. Most of our legislators have no business experience and less business acumen. The idea that any of them can tell AIG how to run their business better is insanity.
When Arthur Anderson did stupid they went under. There was no discussion about the government bailing them out even though our financial markets depend on the services that CPAs provide. We got a bit antsy about the Big 8 becoming the Big 4. Lots of people lost their jobs, clients realigned with a new firm. Mid sized firms found this to be a huge opportunity.
It was painful, but the market worked then and it could work now.
Government is a place where the problems are worrisome, but the solutions are terrifying.
If you think that I make these comments lightly, there is nothing further from the truth. I am a CPA in SE Michigan who grew up in a GM home.
Susan
Sounds like a page from AMR’s “explanation” to the little people working under concessionary wages since 2003 as to why executive bonuses are justified and required.