18 March 2009

AIG gave "retention" bonuses to ex-employees

Today, AIG CEO Edward Liddy testified before Congress on the executive bonus scandal, and he got a righteous grilling.

Liddy called the bonuses "distasteful", in an apparent attempt to play "good cop, bad cop". But then he went on to defend the payments as a legal commitment that the U.S. government, which now owns 80 percent of AIG, should honor.

OK, I don't like to see my tax dollars flowing into the pockets of the wealthy AIG executives who helped to create the company's (and our economy's) demise; but my sense of integrity drives me to reluctantly sympathize with the contractual-obligation defense.

However:

Then I learned that 11 of the recipients of these so-called "retention bonuses" are no longer working for AIG, including one who received $4.6 million!

I guess "retention" doesn't mean what it used to.

And, by the way: Back in October, AIG had agreed to suspend executive bonuses.

Fire them all. They're rich enough.

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