To Bonus or Not to Bonus? That’s Really a Question?
EmailLast night Steven Colbert lifted the pitchfork (literally) and shouted to the masses (his viewers) "let’s go get AIG!". Sarcastic? Of course. But it seems he’s tapping into what so many Americans are feeling today as the news of the $165 million in bonuses to AIG sinks in.
Despite the frustration some are striking a different tone. Andrew Ross Sorkin makes an interesting case this morning in the New York Times: "…despite how offensive and painful it might be, let’s honor the contracts," he writes.
His thinking? We, the taxpayer, need the employees getting the bonuses to stay on the job because they are the only ones who know how to get AIG out of this mess. Reminder: The taxpayer now owns 80 percent of the company.
Sorkin: "A.I.G. built this bomb, and it may be the only outfit that really knows how to defuse it. A.I.G. employees concocted complex derivatives that then wormed their way through the global financial system. If they leave — the buzz on Wall Street is that some have, and more are ready to — they might simply turn around and trade against A.I.G.’s book. Why not? They know how bad it is. They built it. So as unpalatable as it seems, taxpayers need to keep some of these brainiacs in their seats, if only to prevent them from turning against the company. In the end, we may actually be better off if they can figure out how to unwind these tricky investments."
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Where can I sign up for the job where I can completely screw up and still get a big bonus? Everywhere I work requires me to prove I am the best and the brightest at my job before they give me extra money. I must not be looking for the right places to work.
Posted by: Mack | March 17, 2009, 11:39 am 11:39 am
the answer to your question is;
Become a senator or house member. Preferably a democrat which will give you a better chance of keeping your job after you screw up.
Posted by: chad | March 17, 2009, 11:46 am 11:46 am
I will stste the obvious: Bonuses should be given for successful work. Last I checked AIG wasn’t too successful. Of course congress also wants to give themselves a pay raise in the face of Americans losing their jobs.
Posted by: Huh | March 17, 2009, 12:01 pm 12:01 pm
freeze the money they are expecting to receive. they new the company was in trouble when they contracted the bonus and that is wrong. they should be made to return the bonus money.
Posted by: Barb | March 17, 2009, 12:19 pm 12:19 pm
Bonus what?. Great lets continue and keep rewarding the fraud and bad behavior. Our government is like the Head of Household, when they behave and make wrong decisions, what do you expect from the other members of the family and the children.
Posted by: angie271980 | March 17, 2009, 1:29 pm 1:29 pm
What if AIG had not been bailed out. would the bonuses been paid out then?
We should not be bailing out any company, PERIOD.
Bankruptcy, and reorganization would be much better, even for the auto companies. Then spend the billions on unemployeement, extended healthcare for the unemployed.
The companies that come out of this mess would be better and stronger.
Posted by: DEH | March 17, 2009, 1:34 pm 1:34 pm
The worst part is that we’ve declared them “too big to fail”. So, basically, they can get away with whatever they want at this point.
The real irony is that we’re immortalizing a company that is supposed to be the epitome of laissez faire even after it’s failed. The very system that smade their greedy money grab possible should have been the mechanism that wiped them off the face of the business world.
Posted by: Joel | March 17, 2009, 1:34 pm 1:34 pm
According to the constitution a sitting congress cannot receive the pay raise voted in until after the next election.
If this congress which started in January votes in a pay raise, they don’t get it until January 2011 when the next congress is in session.
Posted by: George | March 17, 2009, 1:37 pm 1:37 pm
Remember to hang the SOB that wrote immunity into the stimulus bill for bonus recipients…the beloved scoundrel Chris Dodd!!! I hope Colbert goes after Dodd and Frank for the lowlifes that they are.
Posted by: jim | March 17, 2009, 1:38 pm 1:38 pm
The worst part is that we’ve declared them “too big to fail”. So, basically, they can get away with whatever they want at this point.
The real irony is that we’re immortalizing a company that is supposed to be the epitome of laissez faire even after it’s failed. The very system that smade their greedy money grab possible should have been the mechanism that wiped them off the face of the business world.
Posted by: Joel | March 17, 2009, 1:39 pm 1:39 pm
Sounds funny, Mr. Sorkin: “If they build this bomb, they know how to defuse it”.
Some people think that if “They knew what they’re doing, they’d stop then”.
Another opinion has it: “If they did it dew to stupidity, the quicklier they’re out, the cheaper. If there is a criminal element envolved – why district/state attorneys catching butterflys, not criminals?”
Either way, leave remaining of my money in my pocket and check their’s.
Posted by: Arkady | March 17, 2009, 1:41 pm 1:41 pm
I would like to see the names and bonus amounts made available to the public. Is that illegal or something? Since none of these people are willing to graciously refuse their bonus, maybe we can shame them into volunteering to do so????? After all, the autoworkers were willing to lower contractual salaries…… SHAME!
Posted by: helpless voter | March 17, 2009, 1:43 pm 1:43 pm
I think the bonuses shouldn’t been blocked because it will be the worst financial act in America but it is the only way to secure these bonuses from any recklessment or endangerment to spending. We need to secure these bonuses to make sure that the financial crisis doesn’t fall into the british hands are tied.
Posted by: James L. Kilgore | March 17, 2009, 1:43 pm 1:43 pm
It isn’t really possible to know exactly what will work and what won’t. AIG could have been allowed to go under, but it wasn’t—now we’re having this discussion on bonuses.
If AIG had some common sense, which they apparently don’t, the bonuses would have been suspended until such a time as the company was solvent again.
If they can afford to pay out these bonuses now they don’t need any more money. Suspend the $30 billion that was set to go to them.
Posted by: George | March 17, 2009, 1:45 pm 1:45 pm
George is right. Is there any rule that the bonsues have to be paid this year?
Posted by: Carol | March 17, 2009, 1:49 pm 1:49 pm
Does anyone know what a RETENTION BONUS is? That means the people getting the BONUSES already KNOW they are being let go. The only reason they are getting these ‘bonuses’ is to retain them, so they can keep running the company until they are PERMANENTLY laid off.
So now our ESTEEMED PRESIDENT is NOW ‘for’ screwing over EMPLOYEES who will be losing their jobs ANYWAY!
By the way, the millions of dollars that are going to soon to be layed of employees are less then 1/10 of the entire ‘stimulus’ package.
Posted by: debrarae | March 17, 2009, 1:59 pm 1:59 pm
“AIG, Inc. represents a clear and present danger to the national security of the United States.”
Posted by: Paul B. | March 17, 2009, 2:07 pm 2:07 pm
Congress said they were not aware of the bonus factor when they handed over the bailout. Was it due to AIG hiding facts, telling half-truths, or misrepresenting facts?
If yes to any of the above, then AIG committed fraud.
The execs are guilty of running the company into the ground with very risky behavior. The company was bleeding money, yet they continued to do the same type of business.
Clearly, this is malfeasance of duty.
They did not perform minimum standard of operation regarding this business.
There’s no question that the bonuses are to be handed back to the government.
Clearly, AIG did not need this money to help keep the business afloat. They gave it to failed executives – their pals.
This whole fiasco is a miscarriage of justice, I dare say.
When is justice coming?
Posted by: Enough already! | March 17, 2009, 2:34 pm 2:34 pm
I am blessed with ethics,morals of my own nature . I too hold myself with service k-9 Abba honest to the letter of law she has licence,I am unable to work . I am legally judicated with award
and benifits . If I lied I would be in jail not with financial bonus, besides live on what I have as income for one month. If your use to what you make ,you would shoot yourselves. How can you sleep with people that live like us . You selfserving,selfless discusting _ _..
Pat/Abba k9
Posted by: PatrickLab Sullivan | March 17, 2009, 2:41 pm 2:41 pm
AIG executives should not get bonuses at this time PERIOD! No matter if it’s in their contract or not, these are dire circumstances. If in the future, after they pay back the government for their bailout, then the executives should get their just desserts. Also, when stock options become part of their compensation the options should be frozen for five years. They can cash them in five years after being received. This way all the profits (if there are any) will go towards paying back the taxpayers. I’m sick of this entitled thinking. Who do they think they are????
Posted by: Sharon | March 17, 2009, 2:44 pm 2:44 pm
when is ABC going to hold Obama and Geitner accountable for this mess? this is a joke to blast AIG. It is Geitner and Congress with the urging of Obama that got us into this debacle. Can’t you people see that? Gimme a break! Geitner should resign along with several members of Congress that railroaded this thru. Look it up!!
Posted by: Ed E | March 17, 2009, 2:47 pm 2:47 pm
So what’s to stop the ‘brainiacs’ from leaving anyway, as in take the ‘bonus’ and run, laughing all the way to whatever bank they don’t think is doomed to fail?
Posted by: checquers | March 17, 2009, 3:18 pm 3:18 pm
It is amazing to see people (idiots) actually blaming the Democrats for this mess. After all, it was and still is the Repoublican mantra that “Greed is Good.”
Why keep the incompetent people who created this mess? Hire fresh, but honest, new people at lower salaries and pay them bonuses only if they turn this mess around. It is the definition on insanity to keep doing whatever it was that got you into the problem in the first place and just hope for a different result!
Posted by: Ian MacFarlane | March 17, 2009, 5:06 pm 5:06 pm
Are you kidding? What planet are you from if you even have to ask the question? I don’t care what your job title is. Common sense dictates that it would be morally wrong to accept government money to bail out your company from collapse and put it in your pocket. What has happened to us? Do they have no shame?? I am so disgusted and disappointed in the human race. Isn’t there enough going wrong with abuses of public hard earned $ and abuses of our trust. Signed, Outraged!!!
Posted by: D. Pursley | March 17, 2009, 6:04 pm 6:04 pm
I don’t understand why they are geting bonuses in the first place. For what? The economic is in a mess and these people get bonuses, for what??!!!…the mess they created!!! It is absolutely total craziness!!!
Posted by: Susy cue | March 17, 2009, 6:17 pm 6:17 pm
i THINK THEY SHOULD BE FIRED AND not allowed to work in the banking or insurance industry again. The laws that govern selling insurance should be used to also convict them and send them to jail where they belong. She how they could mess AIG up agbain from jail.
Posted by: jerry | March 17, 2009, 7:05 pm 7:05 pm
“…despite how offensive and painful it might be, let’s honor the contracts,” – Ross Sorkin
Screw the contracts.
Don’t do what’s legal.
Do what’s right.
Don’t pay bonuses to inept employees for shoddy disgraceful performance of their jobs.
Are you listening NoBo?
Try to forget that you’re a lawyer.
Try to forget all those Ivy League friends.
Try to do what’s right for once.
Posted by: Noz | March 17, 2009, 11:19 pm 11:19 pm
I think we need a speciall tax on ALL people at companies that took government funds. How about an extra 50% of all amounts paid over $500,000. If your company needed gov’t funds to stay alive- you should not be earning more than $500K –and get to keep it.
Posted by: John Houston Texas | March 18, 2009, 12:26 am 12:26 am
The AIG bonuses should be paid, but in a restructured manner. The bonuses should be deferred until repayment of the bail- out money has been accomplished.
It might be structured to pay 25% of all deferred bonuses when 50% of the money has been repaid. Pay another 25% when 75% has been repaid, and pay the remaining 50% bonus when 100% has been repaid and AIG is operating in the black. There would be a ten year time limit. All unpaid bonuses would be forfeited after that time.
That’s what bonuses are; additional compensation for accomplishing something positive. Americans aren’t against bonuses that are earned while correcting AIG problems and repaying the money.
No bonus for AIG employees who leave or are terminated. Bonuses forfeited by employees who leave or are terminated are to be used to increase the % bonus paid to current employees and new hires who remain and rebuild the corporation.
Posted by: John in Baton Rouge | March 18, 2009, 12:54 am 12:54 am
IMAGINE ALL THE SMALL BUSINESSES & EMPLOYEES THAT COULD’VE BENEFITTED FROM THAT 330 BILLION——————————————————Don’t let them GOP fool you with instigation & agitation either.., Their doing a good job of SCREWING the American taxpayers over also…
Posted by: Hiroader | March 18, 2009, 6:43 am 6:43 am
American taxpayers have no obligation to corporate bonus contracts——————————– The Obama administration agrees, The minority GOP agrees, The democratic majority agrees, The American population agrees.. The issue is preaching to the choir…———————————————-THE QUESTION IS.., ARE THESE CORPORATIONS OBLIGATED TO THIS COUNTRY??
Posted by: Hiroader | March 18, 2009, 7:00 am 7:00 am
lET’S COUNT UP ALL THE STIMULUS ABUSES BY THESE CORPORATIONS.. AND ASK “INVEST IN THE NEW OR FLUSH MORE DOLLARS AWAY WITH THE FAILING OLD??———————————————————Now that the government owns 70% of AIG. Ask yourself, Are they paying bonuses to these executives to flee or succeed???.. A waste of money & time either way…
Posted by: Hiroader | March 18, 2009, 7:17 am 7:17 am
Enough with questioning these criminals; They will not be shamed by any amount of insults or questioning before Congress. They know no shame. They are laughing at all of us all the way to a good bank, most likely a small community bank. The Senate passed an ammendment preventing this type of bonuses, rip off, but the House, after all the lobbying from Wall Street deleted it. Tax them all, fraud should not be rewarded. Stop the circus and outrage; every one knew what could happened and it did. Act now tax and prosecution. These criminals and their families will not enjoy the benefit of their fraud in prison. But be real this mess started with the Bush administration.
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