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AIG CEO says employees starting to return bonuses

Too little too late? or just what is needed to get on the right track?
http://news.yahoo.com/s/ap/aig_outrage

Answer Question
 
sweet-a-kins

Asked by sweet-a-kins at 4:36 PM on Mar. 18, 2009 in Politics & Current Events

Level 34 (67,502 Credits)
Answers (15)
  • So, they received the money that was contractually obligated to them, then are threatened with recourse if they don't return it and are told that if they don't return it on their own, the government will take it from them. Wow, I am so surprised that they are returning the money. I think it was stupid of AIG and the government to not have put conditions on the bailout money, but those employees have contracts. It's wrong to take that away from them and I am sure there will be lawsuits over getting that money back on behalf of those under contract.

    Anonymous

    Answer by Anonymous at 4:40 PM on Mar. 18, 2009

  • BUT...They would be OUT OF JOBS if the government didn't BAIL them out...so maybe there should be a different angle..Although I don't know WHY there wasn't a provision in the first one.

    sweet-a-kins

    Answer by sweet-a-kins at 4:46 PM on Mar. 18, 2009

  • Just another case of stepping over dollars to pick up dimes.
    Anonymous

    Answer by Anonymous at 5:02 PM on Mar. 18, 2009

  • AIG should have had more sense than to give out the bonuses in the first place. But I am happy the government was all over this one and is using threats to get those greedy employees to hand the money back.

    I'm all for giving bonuses when employees EARN it. When a company fails, so do the employees.
    sammygrl77

    Answer by sammygrl77 at 5:07 PM on Mar. 18, 2009

  • Thats what they get for not doing what their told!
    soonmommyof3

    Answer by soonmommyof3 at 5:07 PM on Mar. 18, 2009

  • I'm glad they are returning the money.
    I also understand that the company had to pay the bonuses as per their employee contracts.
    heatherama

    Answer by heatherama at 5:12 PM on Mar. 18, 2009

  • Just curious, if you have a contract on your house and the feds don't feel that you are paying enough, should they have the ability to change your contract after the fact?


    That is exactly what they are doing with this. It's a violation of law that they are threatening. Those employees had contracts. Whether they earned the money or not, their contracts are legally binding. If you give the govt. enough control to change it now (after the fact), then cover your arse, because you could be next.  Again, we are failing to see the big picture.

    Anonymous

    Answer by Anonymous at 5:14 PM on Mar. 18, 2009

  • heatherama, I think it's interesting that some are returning the money, but I have to wonder why. Are they being threatened by other citizens (we all know how nice everyone has been with Octomom, it's not a stretch to think that these employees have incurred death threats as well). If so, I think I would file this one under 'class envy', as those that feel entitled are putting pressure on those that they think don't work hard enough to earn that money.

    Anonymous

    Answer by Anonymous at 5:16 PM on Mar. 18, 2009

  • I see the big picture. I know they had contracts. What I don't know is what exactly the contract stated and how legally binding it was for the bonuses.

    Contract or not, it was wrong to hand out bonuses to employees that failed their employer. It was wrong to hand out bonuses in a company that was saved by American tax payer's dollars.

    If the feds gave me a money so that I could keep my house, then they would have every right to change my contract. The thing is, I wouldn't be stupid enough to pull that kind of move.
    sammygrl77

    Answer by sammygrl77 at 5:21 PM on Mar. 18, 2009

  • Anon, I do think it's because they feel threatened. But maybe some feel remorse, too? Maybe they realize that they do not deserve the bonus? I don't think any of us really know the answer to these questions.
    I also agree that they had contracts and they have to be honored.
    There was a great segment on NPR about this yesterday. It basically said that no matter how detestable it sounds we have to let them keep their bonuses because of the contracts and also because of the fact that many of the traders who were to blame are no longer there. Some of these people are new and good and AIG is having trouble holding onto employees.
    heatherama

    Answer by heatherama at 5:21 PM on Mar. 18, 2009

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