Embattled AIG Hoping to Avoid Backlash When Paying Out More Bonuses
EmailABC News' Matt Jaffe reports: After AIG, which received a record $180 billion in federal bailout money, incited a national uproar in March by paying out $165 million in bonuses, the insurance giant is taking steps to avoid a similar furor as it prepares to dish out more bonuses.
This time around, the numbers are nowhere near as eye-popping: only $2.4 million to 40 high-ranking executives, according to administration documents cited by the Washington Post.
However, both the company and the government want to avoid any kind of backlash as bad as the one last spring.
AIG declined to comment on the new bonuses, but a source close to the company said officials there are very concerned about making sure their stakeholders in the government are comfortable with the compensation plans.
Therefore, the company has been engaging in an active dialogue with the government, the source said, to get to a point where everyone is comfortable with the plans. As part of this effort to get everyone on the same page and avoid any surprises, the source said the company is trying to be as open and clear as possible with the government about handling compensation in an appropriate manner.
Meanwhile, the government's position also has evolved since the March fiasco. Now, the administration has appointed an official — Kenneth Feinberg — to oversee compensation for top executives at seven firms receiving "exceptional assistance".
"We all have a shared interest in ensuring that those companies can return to profitability as soon as possible so that taxpayers can recoup their investment," a Treasury spokesman said in a statement.
"Companies will need to convince Mr. Feinberg that they have struck the right balance to discourage excessive risk taking and reward performance for their top executives. That process is just beginning now, and Mr. Feinberg has begun consulting with those firms about their compensation plans. We are not going to provide a running commentary on that process, but it's clear that Mr. Feinberg has broad authority to make sure that compensation at those firms strikes an appropriate balance."
- Matt Jaffe
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I don’t see why any these exec’s especially any of the characters that have caused the current mess deserve any bonus. I don’t get a bonus for doing the job I’m paid to do. They are VERY well compensated without the bonuses.
Posted by: Enough Greed | July 9, 2009, 10:36 pm 10:36 pm
I’d like to know what “GREAT” and “Wonderful” things these losers did to deserve those kinds of bonuses on top of there obscene salaries….
Posted by: turbidmedia | July 9, 2009, 10:37 pm 10:37 pm
Thats funny…I remember something about AIG refusing to compensate the survivors of the “Mircle on the Hudson” flight. Is that what they get bonuses for?
Posted by: bluevt76 | July 9, 2009, 10:54 pm 10:54 pm
You have got to be kidding. This is just too much to take. It is time to take back our country. Amen
Posted by: nomore | July 9, 2009, 11:00 pm 11:00 pm
These yahoos just won’t get it till a lynch mob shows up at their doors with torches and pitchforks…
Posted by: 1enlightened | July 9, 2009, 11:17 pm 11:17 pm
Tax payer funded Bonus for poor performance and arrogance. The new capitalism. It is disgusting. I am not one to support any violence but 1enlightened may allow us to let us imagine it.
Posted by: gjkotw01 | July 9, 2009, 11:29 pm 11:29 pm
Why do I see a screwup redux coming?
Because they just can’t help themselves
…..they CAN’T!
Posted by: Trajan | July 9, 2009, 11:53 pm 11:53 pm
Uh…save the pitchforks and torches.
This is Obama and his crusaders allowing
the bonuses. Hope and change my……….
Posted by: Trajan | July 9, 2009, 11:57 pm 11:57 pm
No. Just…..no.
Posted by: Jaylah | July 10, 2009, 12:29 am 12:29 am
They can’t avoid a backlash. These execs don’t deserve ANY bonuses. Period. Not until the bail-out money is repaid and their company is back in the black legally. I can’t believe they’re trying to pull this trick again, and go figure if the “change we need” WH lets them do it again. Won’t surprise me a bit because there has been NO change in the WH. Just the same old crap from more corrupt politicians.
Posted by: JustMe | July 10, 2009, 1:16 am 1:16 am
They coned the goverment out of several “Bail out Grants” & the Excs.used the money for they’re own selfish pleasures ( weekends at expensave spa/resourts & lots of other benifits. They did everything EXCEPT what the money was supose to be used for.
Now they want more. These Execs. need to be jailed & have they’re personal assets sized to pay back investors that have lost mony in the mess.
Posted by: James | July 10, 2009, 1:38 am 1:38 am
NO MORE BAILOUTS, NO MORE STIMULUS PLANS, NO MORE BONUSES.
Posted by: Kaizer | July 10, 2009, 2:38 am 2:38 am
America is in the red going into 13 trillion dollars,china owns america,yet AIG seems to think its the money is theres ,What a joke.
Posted by: rageykiwi | July 10, 2009, 2:48 am 2:48 am
What is wrong with AIG? They are like little children trying to push the envelope. They should be thankful they have a job while the unemployment rate grows to nine percent!
They got us into a HUGE mess! First it was resorts, private planes, and huge bonuses, and now its smaller, but STILL huge bonuses. Wake up AIG execs!
Your company wouldn’t exist if it wasn’t for the taxpayers. You don’t get privileges. You should have to work like the rest of the united states. Isn’t no jail time enough of an incentive to you???
Posted by: Ohplease! | July 10, 2009, 3:55 am 3:55 am
…And will one of President Obama’s CZARS say , “OK, but give us a political donation!”????????
When are we going to see some breaks for small businesses? Does Obama just not get it on the impact small businesses have on the economy, or are we just to small for his ‘larger view of the world’???
PS: Who is the watchdog for utilization of paybacks from all of these bailouts? If the answer is ‘another Obama Czar’ THAT IS ALLOWING THE FOX IN THE HEN HOUSE!! How do we know that the pay backs are going back to the citizens??
Posted by: PappyHappy | July 10, 2009, 5:42 am 5:42 am
AIG IS ROBBING THE TAX PAYER AND GETTING A BONUS FOR IT I HAVE TO PAY MY BILLS THEN PLAY THEY ARE PLAY AND I AS A TAX PAYER PAY THE BILL WHAT IS WRONG WITH THIS PICTURE, ASK OUR PRESIDENT.
Posted by: w BOSLEY | July 10, 2009, 6:19 am 6:19 am
Any exec in this company that votes to give out bonuses should be arrested.
This is a failed company and right now owned by the US govt and the taxpayers.
Posted by: Kathy | July 10, 2009, 7:45 am 7:45 am
If the money is truly due to low other compensation, they should also announce the average salaries of those receiving bonuses. I’m not in favor of these bonuses, but I’m absolutely amazed that the media selectively picked on AIG’s $165M bonuses last time and ignored the $9000M, $9 billion, Merrill’s execs got. And other banks also had much higher bonus payouts than AIG. Is this to distract people? Is it like the kid waving his “D” paper in front of dad, hoping he won’t bother to notice the “F” paper in his other hand?
Posted by: The_Mick | July 10, 2009, 7:50 am 7:50 am
The best way to describe these executives is to say that, they are both shameless and corrupt.
Posted by: Sam | July 10, 2009, 7:50 am 7:50 am
As a stock holder (taxpayer) – I vote no.
Posted by: jamescbuilder | July 10, 2009, 8:42 am 8:42 am
I ” lost” over $20K from my 401 last year. When am I expected to compensated for that?
Posted by: js45601 | July 10, 2009, 8:46 am 8:46 am
Albeit there performance review if any exists reads like this, This executive has shown great leadership skills through stealth and deception by earning AIG Billions in public funds while driving the once profitable company into the ground.Since public/taxpayer funds were used and not AIG Capitol to bring AIG back into solvency Mr. Executive deserves a bonus.
Posted by: sybase46 | July 10, 2009, 9:04 am 9:04 am
I say the executives should be their earned bonuses, but they can’t use any of the government bailout money to pay them. If AIG doesn’t have any non-bailout money to use, then too bad, so sad.
Posted by: Waysie | July 10, 2009, 9:05 am 9:05 am
BONUSES! YOU’VE GOT TO BE KIDDING! Do people not get it! As a taxpayer I vote no. I can’t believe that after 10 monthes of discussion that’s even asked about.
Posted by: john | July 10, 2009, 9:06 am 9:06 am
No more bonuses…They should be ashamed of themselves.
Posted by: Barb | July 10, 2009, 9:21 am 9:21 am
It is a government owned company.
So what?
Did George Bush not get a bonus for invading Iraq succesfully? At least, in the short run.I sure think so. That’s American culture. It got him reelected.
Posted by: Peter | July 10, 2009, 9:36 am 9:36 am
Geithner and Bernanke and Paulsen are fools.. Remember, these are the guys who missed every bit of the financial disaster that hit us… People like Roubini of NYU and Shiller of Yale were calling the disaster long before it hit… Paulsen made sure that his buddies at Goldman Sucks did not lose any money by taking taxpayer money and funneling it through AIG to his buddies 100 cents on the dollar. Bernanke said the mortgage crisis “will be limited to subprime”… what an a.ss… Geithner is throwing taxpayer money down the rathole (giving it to his rich wall street buddies) as fast as he can, thereby ensuring that when he leaves the government he will be warmly received and rewarded… Congress is totally dysfunctional… The Treasury and the FED are essentially taking what should have been losses on rich investors and turning them into losses for the American taxpayers of future generations (our kids and grandkids)… FBI is silent. Obama is not an economist and is being advised by Larry “the criminal” Summers, who received $5 million dollars last year from wall street banks for doing absolutely nothing. It is a damn shame… As my dad used to say “money to money and s.hit to the ducks.”
Posted by: bob | July 10, 2009, 9:40 am 9:40 am
But how would the politicians get their kickbacks if the execs don’t get their bonuses? That is the question!
Posted by: Retired | July 10, 2009, 9:43 am 9:43 am
This is the true definition of “Elite.” They are accustomed to having their way. After all, they are greedy and immoral. Bonus for poor performance. Unheard of…
Posted by: Janeyre | July 10, 2009, 9:53 am 9:53 am
How could AIG even have the nerve to think about bonuses to the executives ? They are the ones that ran the company into the ground and sank the ship.
None of them would deserve any bonus and they are all well paid. If they can’t do the job, let someone else do it. No one should get any bonus before they have returned all the money loaned to AIG.
Posted by: jslca5249 | July 10, 2009, 9:57 am 9:57 am
Hmmm… let’s see, $2.4M divided by 40 execs comes to… $60K. That’s a solid salary for some people. What will the execs do with it, buy a yacht? Did anybody read Grisham’s “The Appeal”?
Posted by: godef | July 10, 2009, 10:11 am 10:11 am
There is a gigantic FEEDING TUBE that runs between Washington and Wall Street – Fannie, Freddie, AIG, Wall Street investment banks and commercial banks (like Morgan Stanley, Citi, Bank of America, Wells Fargo, JP Morgan Chase, US Bank, Capital One, etc.) I cannot understand why any citizen would continue to place their hard-earned money in these institutions.
Posted by: AmyConfused | July 10, 2009, 10:25 am 10:25 am
AIG received a record $180 billion in federal bailout money, that’s $180,000,000,000.00. No one, I repeat absolutely NO ONE in AIG deserves a bonus! These upper management clowns are handsomely compensated for what little work they actually perform.
Tell you what, AIG… Once you have repaid the American taxpayer our money, all $180 billion, with significant interest then, and only then, you can pay bonuses to your greedy executives with YOUR money.
I agree with The_Mick… The salaries of these poor, underpaid executives should be made public.
As a vested owner of AIG, I vote “No”, too.
Posted by: Treesdontgrowmoney | July 10, 2009, 10:29 am 10:29 am
since AIG doesn’t want government micromanaging, they should make their own decision on this and not pass the buck to the administration.
Posted by: dmjakers | July 10, 2009, 10:56 am 10:56 am
Whenb these guys figure out how to and actually do pay back every cent they were given, then they can have all the perks and bonus’s they can steel from their customers. Personally I will never buy any product associated with AIG
Posted by: bill | July 10, 2009, 11:07 am 11:07 am
Am I the only person who was screaming at the tv last fall –set conditions on the money? If I thought of this, why didn’t some of the big brains, I guess Bush had some intelligent people around him? Right? Maybe not.
Posted by: cregis | July 10, 2009, 12:03 pm 12:03 pm
Where have all the protesters gone, who did so well at other exec’s homes, calling them every name in the book,threatening them and their families, while AIG gave bigger and better bonuses at the same time, and AIG still does not have enough and wants to give more bonuses.
Posted by: Lizzie | July 10, 2009, 1:31 pm 1:31 pm
How could this even be possible. They want to entice these crooks to stay on with bonuses. They are the nuts that screwed our economy in the first place. If they are given a penny for bonuses, it will be time for massive protests and Obama will need to dig himself out of a mess if he lets this happen. AIG deserves nothing. No more money, no more anything. I don’t trust any politician or big business any more.
Posted by: Kris | July 10, 2009, 1:54 pm 1:54 pm
I am *DISGUSTED* that my tax dollars are being paid out as bonuses when the rest of us are just squeaking by.
There are no bonuses, raises, morale events, Christmas parties, or anything that is not related to taking care of our customers this year at the company I work for.
All of this AIG, Merrill, bonuses makes absolutely no sense. Someone else mentioned it but where the hell is the accountability?
President Obama and Congress:
Please stop the bonuses, stimulus packages, bailouts, kick backs, and pork projects. You are destroying our Country. How are we ever supposed to pay all this money back? This is complete fiscal disregard and is immoral.
We the tax payers are close to pulling together a lynch mob and coming to get you. Do your job, balance the budget, spend no more than is coming in, and pay back the debt we already owe. It is that simple. The economy will take care of itself.
Posted by: bulldog | July 10, 2009, 3:10 pm 3:10 pm
AIG Stock has shot-up like a rocket in recent weeks. Here we have a company that should not even exist, and their stock is skyrocketing. It’s probably Senators and Representatives and Treasury Secretaries and Fed Chairmen making big money on AIG. Wall Street and Washington Wizards stack the deck for themselves every time.
Posted by: Wendy | July 10, 2009, 4:39 pm 4:39 pm
I VOTE NO…. SIMPLY PUT…
Posted by: Gwilsing | July 10, 2009, 7:33 pm 7:33 pm
How can they justify bonuses for people who drove the company into the ground? Since when do people get bonuses for poor performance??
Posted by: Rick, Denver, CO | July 10, 2009, 8:51 pm 8:51 pm
James and Just Me have it right. We are allowing these thieves to spend it all plus get a bonus for their trouble. It’s not going to stop with new legislatures/leaders. USA just must start arresting, jailing these thieves and allowing them to serve time the hard way. And we need to foreclose and confiscate their toys and houses, cars, etc., that they bought with their stealing way of life. Go get ‘em!!
Posted by: Sharlene | July 11, 2009, 2:45 am 2:45 am
Can someone list the names of these great people who deserve bonuses!
I hear they will quit if I dont pay them bonuses from my $10/hr wage. Just release their names and protect us from future companies they plan to run, should any company hire these criminals.
Posted by: Roger | July 11, 2009, 2:59 am 2:59 am
Bonuses are supposed to be given for doing a good job. They ran their companies into bankruptcy. Why are they still being rewarded for poor work? People are losing their jobs, homes, health insurance. Can we PLEASE get these horrible people out of their ivory towers in onto the unemployment line with the rest of us?
Posted by: Julie | July 11, 2009, 7:40 am 7:40 am
I spent 30 years in the Navy and I have fellow service members dying every day in Iraq, where is their bonus. Maybe we should give our great service memebers who complete a tour of duty in the war zone a 5 million dollar bonus for making it without getting killed and if they do get killed give their families 10 million. Seems fair to me.
Posted by: Don | July 11, 2009, 12:57 pm 12:57 pm
Funny how outraged people are about AIG. I don’t hear anyone complaining about all the bonuses Freddie and Fannie execs received. Might I remind you all that one of the hallmarks of rise of Nazism was complete takeover of private industry by the State?
Posted by: Thomas | July 12, 2009, 3:52 am 3:52 am
Isn’t it odd that a company that just these past weeks has been laying off people and bringing in H1B’s is seeking to pay out bonuses of any kind… That’s just what the AIG (or AIU or whatever they’re calling themselves this week) in our building has been doing.
Posted by: a2zpaAngel | July 12, 2009, 8:20 pm 8:20 pm