AIG execs getting large payouts
Filed under: Borrowing, Debt, Wealth, Fraud, Bankruptcy
American International Group, the insurer getting a $152 billion federal bailout, disclosed it will pay approximately $3 million to several executives under deferred compensation plans that will be terminated. These arrangements have come under increased scrutiny as stock holders are questioning the large executive payouts in companies with plummeting stock values.
Personally, I just don't get it. If your company has to have a federal bailout because the business is mismanaged, why do you get a bonus or deferred compensation? Every job that I have ever had tied my compensation to my performance with financial targets. If I didn't hit my goals, my pay reflected this.
I know, these executives claim that there are market forces that they could not control. Like GM, Chrysler and Ford, they claim that their present financial problems have nothing to do with management. They report that it is simply a combination of factors that has put their corporations into bankruptcy.
I have owned and operated four corporations, and I take umbrage with their view. Anyone can steer the ship when the seas are calm. A dog could sit in the CEO seat and do just fine. It is much more complicated to manage when there are challenges. Isn't this what the big bucks were for in the first place?
These sweetheart deals are part of the corporate greed that has gotten our economy in so much trouble. Somewhere along the line, executive salaries took off while there was wage compression for everyone else. Is anyone really worth all that money? Especially with poor performance? Do I get to vote on some of these bailouts?
Barbara Bartlein is the People Pro. For her FREE e-mail newsletter: The People Pro.
Reader Comments (Page 1 of 1)
11-21-2008 @ 4:29PM
Big T little odd said...
What do we expect when corporate America and wall street are all based on how much we made today or this minute with no though of the long term investment in the company and its employees.
All short term capital gains should be taxed at a very high rate to encourage long term investments and reduce the speculation (gambling) with the American economic well being.
Stock options should be required to be held by the benficary for a minumun of 5 years from the date it is recievced. A corporate exec should not be allowed to cash in more than 20% of their options in any year and these must be done on set dates to avoid insider trading.
Reply
11-21-2008 @ 4:55PM
jOAN said...
I agree. Why doesn't the public get to vote, seeing that the government is not sure what to do. I think we should vote on everything, and I mean everything, the people should have the final say as to what gets done or doesn't get done in our country. Not a few elected official who don't listen to the people anyway, they just vote the way they want to. When do we ever get a say on anything. Yeah, we vote for them or don't vote for them but then they vote the way they want. For America to be free, the people should have the direct vote, not one else.
Reply
11-21-2008 @ 5:10PM
Lisa said...
It must be nice to screw up royally and get rewarded....with our hard earned tax dollars no less. No job I've ever had or heard of gave bonuses to people that ran the company into the ground.
I agree, the American people should be the ones voting for this, not the people in the House and Senate- who may or may not be looking out for us.
Reply
11-21-2008 @ 5:56PM
Dottie B. Miller said...
What a positive incentive for this country if the greedy top executives who have long been overpaid for their performance, would suddenly have the guts to be good Americans. They could defer, decline, split, give back all the excessive earnings they will or have received. Are they so dumb as to not realize that the top of the acorn tree is only as strong as the trunk and branches make it. The top executives should see that the middle management or the branches, and the workers or the trunk are now suffering and can not sustain their heavy top.
They should get with it - Goldman Sachs executives are making n effort to help the trunk hold them up. What about the rest of our greedy bunch?
Reply
11-21-2008 @ 6:45PM
rick said...
If they can take a bail out then they need to take a cut in pay down to a average of all of the workers there and if they keep having parties an golf outings then it should come out of their pay befor they go to jail!!!
Reply
11-24-2008 @ 8:40PM
cabins59 said...
I have been against ceo pay for a long time. I needs to be 10 times higher than employees. Or you get it.
Reply
11-25-2008 @ 9:53PM
Rob said...
My vote would be:
Give every taxpayer in the country $25,000 dollars.
We would be required to spend the money before the April 15th tax deadline, and have to verify all expenditures. I feel this approach would kickstart the economy in a more positive way than watching the greedy imbicils that have created the problem get rewarded.
People in financial trouble would be able to catch up on mortgages etc., others would bring different sectors of the economy solid profits depending on their wants. Things just seem to be stronger with solid foundations. The supply side proponents have failed again.
Reply
12-01-2008 @ 12:20AM
Terri said...
It wouldn't surprise me at all if there were a revolution. Yes, this is the best country to live in, but all us tax payers are being taken for a ride and have been for a very long time.
Hey, what do you say WE give ourselves a raise, as congress did. Why do we vote? They get their way regardless. Money goes to money and always will.
Reply