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AIG – One more thing…
By Brian | March 18, 2009 | Share on Facebook
It’s being reported today that seventy-three of the roughly four hundred AIG employees that received retention bonuses received bonuses of more than $1 million. It’s also being reported that eleven of them (including one who received $4.6 million) have already left AIG, and received the bonus anyway.
In my previous post, I attempted to explain that retention bonuses are not new, nor are they sinister plots to distribute taxpayer money to rich executives. Especially when a company is going through tough times, retention bonuses can be absolutely critical to retaining the most critical people so that the company can flourish again when the crisis is over. I roundly criticized our leaders (including the President) for misleading the American people into believing that this wasn’t the case.
I stand by that criticism. However, if AIG’s retention contracts were written such that bonuses (especially substantial ones) are still paid even after an employee leaves, then we’re talking about extremely poorly written contracts.
Topics: Money Talk, News and/or Media, Political Rantings | 1 Comment »
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