Why am I providing an update on AIG? Good question, and there is a simple answer - crazy.
This is the stupidity of bailing out a company interested in nothing but itself. After much hoopla about the need to pay bonuses in order to retain the best staff and to turn the ailing, perhaps mortally wounded, business around, it seems that at least eleven executives have decided to take the money and run. So much for retaining staff.
The retention bonuses were paid to some 73 individuals, all of whom received at least USD 1 million, for their efforts in presiding over a prosperous business and running it to the brink of collapse. What is really bizarre is that these bonuses were paid from money provided by the government in order to bail the business out of trouble. Simply, the business can not be in that much trouble if it can make these types of payments. Or, if it is in trouble then payments of this kind and magnitude are totally irresponsible and make a mockery of hard working tax payers who are now feeling the pinch because of the bad business decisions of others.
As I said in the previous post on this topic. I wonder if letting this one fall is such a bad idea when the bonuses could have been used to provide golden handshakes to less fortunate employees of the company who are likely to be let go in any restructuring and streamlining of the business model.
Sad, very sad.