Executive bonuses after the bailout

More fury regarding bonuses paid to employees of AIG.  These bonuses are being paid after the US Government has already bailed out the company with billions of taxpayer dollars.  It’s like a rich parent giving money to a little bastard of a child simply because without the money, the child acts like a brat and f’s up the parent’s day.

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AIG is paying around USD 165 million to 400 employees in its financial services unit – the same unit that caused AIG to collapse in the first place.  I’m not sure what constitutes a pat on the back and “Congratulations on a job well done!” but I’d assume forcing your company to beg for money should not qualify.  But oh wait in the financial industry, it does.

The justification / reasoning is that the bonuses were in the employee contracts so the company is obligated to pay them.  Fair enough, but it’s time to re-negotiate those contracts.

What’s sad is that employees in morally-sound companies are taking huge blows –layoffs, reduction in salary increases, lower benefits, etc. while some of the chief instigators of this economic crisis are still getting rewarded.

I’d like to see some opinionated owners of large companies take a stand and refuse to do business with certain institutions.  Imagine if AIG could no longer buy software from Microsoft, Google, Sun, Oracle, IBM, etc.  AIG would die. (Yes, yes, I know this doesn’t make sense because then the company would collapse and the American taxpayer money used in the bailout would be lost… but wouldn’t it be exciting to see!)

(Written on the HP Mini 1000)

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