Retention Bonus...What do you think...?

[TM7]

There is a lot of bruhaha and rhubarb in the media about these so-called "retention bonus'" being handed out at AIG;
American International Group.  Seems folks have different opinions on this subject regardless of party sympathies or whether lib or cons.   What say you....??


..TM7

[dukkillr]

My opinion is never based on party sympathies... No party or politician is always right, so if you always side with them, sometimes you'll be adopting the wrong position.  That people can't understand an issue and think for themselves is the ultimate problem with the American political system.

I'm glad they're catching all this heat.  If my tax dollars are keeping your business afloat, I expect you to use them wisely.  I don't consider this type of bonus structure to be a wise use.

[Questor]

I don't know about the details of the AIG situation, but I have worked in that industry for a long time and know why the bonuses exist. They are not to be confused with profit sharing. They are a variable component of an employee's compensation. It is variable to create an incentive to perform and stay. It varies depending on whether the employee's department or division is performing well. This means that it is possible and proper to have a company in trouble with some divisions getting bonuses because they are performing well. The jobs subject to the bonuses typically have a long learning curve, with three to five years being common. It is expensive to replace these people, and it is very disruptive. The employees develop a great deal of company knowledge and become experts in their areas.

The retention bonus policy was developed because about 15% of good employees who leave their jobs do so because they feel they are not getting the recognition they deserve. The skills are portable enough so that jobs with other banks can easily be secured.

When Barney Frank said yesterday that the bonuses were unwarranted because there were a lot of banking people looking for jobs he showed his ignorance of how the industry works. It is in the company's best interest to retain good employees. The policy exists to benefit the company, not the employees.

I'm not defending AIG, I'm just giving a factual unbiased explanation of an industry practice.

[Tommyt]

I may be way off but I think there is a lot more going on with AIG that we haven't heard Yet
I hope the the Gov. doesn't end up taking it completely Over
I'm feeling that they (we) have so much of an interest(investment) in it ,that if they are Corrupt or just full of all the wrong things , that the Gov.(we) cannot let them fold and end up stepping in and taking over completely



 THEN WHAT

[45-70.gov]

this  whole  situation  prooves
what  fools  we have running  things

if  they  hadn't bought this company  with our  money
what  AIG  did  would not matter  to us

now  they want  to  re-nig  on  they pay contract....
     .imagine your boss  said  you now  make  half what  you used  to.....and  he wants  most  of last months pay  back

they  are also saying  they may just tax  them  100% on  the money
some kalipornia congress woman  said  ''all we have to do is pass  the legislation''
can  you  imagine  you  get  your taxes  done....
the accoutant  said thay are keeping  all  the money  you mad during the summer

i  wonder  how the forign governments perceive  this  legeslate  as  needed  approach

WELL  THERE ARE  THOSE THAT  WANTED CHANGE......THEY  ARE GETTING  IT

[dukkillr]

this  whole  situation  prooves
what  fools  we have running  things

if  they  hadn't bought this company  with our  money
what  AIG  did  would not matter  to us

now  they want  to  re-nig  on  they pay contract....
     .imagine your boss  said  you now  make  half what  you used  to.....and  he wants  most  of last months pay  back

they  are also saying  they may just tax  them  100% on  the money
some kalipornia congress woman  said  ''all we have to do is pass  the legislation''
can  you  imagine  you  get  your taxes  done....
the accoutant  said thay are keeping  all  the money  you mad during the summer

i  wonder  how the forign governments perceive  this  legeslate  as  needed  approach

WELL  THERE ARE  THOSE THAT  WANTED CHANGE......THEY  ARE GETTING  IT

If we had not bought it, it would not exist.  They lost more money last quarter than any company in American history.  More than the wonderfully run auto companies even!

The analogy you used is wrong.  The more comparable one would be this:  Imagine your boss comes to you and says, "This company is closing and everyone is fired starting tomorrow."  Now he comes back later in the day and says, "This company is losing money at record rates.  We've found financing, but the financier requires that we make changes to our pay structure to tighten our belt.  You need take a significant pay cut or leave."

Then it's your decision, is your skill set good enough to make more elsewhere? 

[rex6666]

Seems that AIG has people in charge that should be gone
didn't they have multi-million dollar party and got caught,
then had another and got caught?
If the government did not give them the money how did they plan to
pay the Bonuses, would the tell the employees we don't have the money
sorry we can't pay, they have known from day one that bonus time was
coming. I am not down on the employees they diserve what they have coming.
what about other companies that run out of money, they just have to lock
the door and send the employees home. As far as other parts of the company
making money and this division isn't, take the money from the divisions that are
why depend on the tax payers. They need new management

[teamnelson]

I think we've started the process of nationalizing industry.

Multi-million dollar parties ... You're talking about the White House.

[45-70.gov]

this  whole  situation  prooves
what  fools  we have running  things

if  they  hadn't bought this company  with our  money
what  AIG  did  would not matter  to us

now  they want  to  re-nig  on  they pay contract....
     .imagine your boss  said  you now  make  half what  you used  to.....and  he wants  most  of last months pay  back

they  are also saying  they may just tax  them  100% on  the money
some kalipornia congress woman  said  ''all we have to do is pass  the legislation''
can  you  imagine  you  get  your taxes  done....
the accoutant  said thay are keeping  all  the money  you mad during the summer

i  wonder  how the forign governments perceive  this  legeslate  as  needed  approach

WELL  THERE ARE  THOSE THAT  WANTED CHANGE......THEY  ARE GETTING  IT

If we had not bought it, it would not exist.  They lost more money last quarter than any company in American history.  More than the wonderfully run auto companies even!

The analogy you used is wrong.  The more comparable one would be this:  Imagine your boss comes to you and says, "This company is closing and everyone is fired starting tomorrow."  Now he comes back later in the day and says, "This company is losing money at record rates.  We've found financing, but the financier requires that we make changes to our pay structure to tighten our belt.  You need take a significant pay cut or leave."

Then it's your decision, is your skill set good enough to make more elsewhere? 

poor  analogy

if  we hadn't bought  it  it  wouldn't  exist
exactly my point   ......no  bonuses

i  have bosses many times in the past fold up and let  me go......what is your point??

just further expansion of government


i  think  if were  the rcipient  of a bunus  i was  contrcted  to receive  and was  attacked  for  it
i  would just take the money and quit

if  you think  they are over paid  why  didn't  you get  THAT job instead of the one  you got??


and  if  they lost so much  money  then  where  did it  go?
they  didn't loose  it  it just belongs  to someone else.......if  it ever really existed

[JimFromTN]

What gets me is that they say these bonuses are to keep the good employees from leaving.  Its these good employees that bankrupted the company.  I don't know about anyone else, but that not my definition of a good employee.  Who cares if they leave.  The only reason to keep them is so they don't bankrupt some other company that we will end up having to bail out.

[45-70.gov]

then why  didn't  the government  just  fire  those  that ran  it into  the ground

as  a condition  of the bail out???


i  yes  did  i state  that  this whole  thing demonstrates
just HOW STUPID  THE PEOPLE  ARE  INVOLVED  WITH  THIS  AND RUNNIG  OUR GOVERNMENT


yet  there  are still registered democrats  on this sight  supporting  the gun grabbers

[Sourdough]

While it looks bad, and I too want the feel good warm and fuzzy of jumping on the band wagon and demanding the money back.  When I stop and think about what has happened, and really think about it, somethings pop out that make me look at this a little different. 

1.  I understand that these executives had a legal contract, that is binding to AIG.
2.  Everyone knew about this, AIG did not hide it from view.
3.  Timing.  People that knew this was coming and had mentioned it prior, suddenly claim they knew nothing about it and are screaming.  This is to take the attention off the recent poles that shows Obama's popularity slipping.

AIG should have been allowed to fail.  Not governments place to bail out private industry.  Look at Chrysler,  They got bailed out once, now they are right at the trough between General Motors and Ford.

Saw a political cartoon this morning that really hits home.  The lady asks her husband.
"Now that we have decided to buy American.   Do we buy the Chevy made in Mexico, or the Honda made in Ohio".
I'd like to add to that, "The Ford built in Canada, or the Nisson built in Tennessee".

 

[Spanky]

BONUS??

I don't see how anyone can say that those bastards deserve any bonus.
Even if it would take 100 yrs. to replace some of these people, they ain't worth a bonus.

The only bonus they should get is a swift kick in the ass.



Spanky

[Skunk]

BONUS??
I don't see how anyone can say that those bastards deserve any bonus.

Even if it would take 100 yrs. to replace some of these people, they ain't worth a bonus.

The only bonus they should get is a swift kick in the ass.

Spanky

  I'm with Spanky. You da man Spanky.

[Cabin4]

This is a failure of the last administration and this one. They did not have a tight agreement when the money was handed out. Look at how much money AIG gave Chris Dodd and Barney Frank. They run the Senate and House Banking committes. Its there for the public record how much was given to them. Now you know why there are gapping holes on these agreements.

Congresswoman Maxine Waters husband sits on the board at Bank of America and she is a member of Franks House Banking committe. Look at how much tarp money went to that bank. Waters openly supported it. Where's the press on this one.

These bastards are criminals and the press will not call them out on it.

We literally have a coup take over of our government. These slobs are using our laws to steal us blind and take away our rights.

[Heather]

In my opinion the AIG scandal for lack of a better word is just another way the media and govt is setting us up.  I think that the gov is trying to accumulate more power, and taking over one of the nations largest companies is simply a good way to do that.  They knew the bonus schedule and they knew this would outrage the people.  This gives them an "excuse" to take it over completely. Am I wrong, probably, but there is more to the story either way.  Only time will tell.

Heather

[gypsyman]

This bailout is just like these so called stimulus package's. So many page's, who read the whole thing? Today, Barney Faggot is screaming the loudest. And he is one of the Rep.'s that set the whole thing up. From what I understand, there was no stipulation in the bailout package NOT, to give bonus's. They sure don't deserve it, but it was in their contract. I think all the money should be given back,bailout money, stimulus money, everything. Considering that so called educated people with higher learning have put us in this situation, their pretty damn stupid. That much money to work with, and this is what we get. A**holes every one. Let it all collapse, and may the best shot win!! gypsyman

[teamnelson]

As a contributor to the State I can't wait to own a chunk of the auto industry, then comrades we will have top pick of new cars, when our number comes up in the national lottery, and we'll get to pick our choice of 3 colors determined to be best for us, from 6 body styles chosen to be the most safe, politically correct, and green. Our comrades in the auto industry don't need bonuses or competition to keep prices low and efficiency up, they just need the pride of knowing they are working along side their comrades in the banking offices, the shipping industry, and food production industry.

Things will be so much better once the government is in charge of all our professions, because they know best, that's why they were elected. Look what it did for Russia, Cuba, China, North Korea! 

I don't care what AIG does; we should never ever have bought them.

[woodchukhntr]

If I personally owned 80% (that is what I keep hearing in the news) of a company, you had better believe that I would be calling the shots, and bonuses for the jerks who had been running the place wouldn't happen.  I don't care if there had been contracts granting the bonuses, bonuses need to be based on performance, and needing government bailout isn't the performance that I mean.  Those jerks should be glad that they didn't be charged their salaries for the rotten job they did.  What ever happened to fiscal responsibility?

Take the money back and let them sue the Federal government (80% owner) if they don't like it!

[Oldshooter]

1.  I understand that these executives had a legal contract, that is binding to AIG.
2.  Everyone knew about this, AIG did not hide it from view.
3.  Timing.  People that knew this was coming and had mentioned it prior, suddenly claim they knew nothing about it and are screaming.  This is to take the attention off the recent poles that shows Obama's popularity slipping.

Thats exactly right sourdough

Obama and the dems all knew that there was going to be a bonus. They even wrote into the bailout  that the bonus was going to be OK!

Now I do think the bailout was a BIG mistake and didn't like it from the get go, but the fools in Washington did it and have known about this for a while! So they should resign for the idiots they are if not the the next election should be their last!

corrected for typos!

[Oldshooter]

Chris Dodd had a clause put in the bailout making the bonuses exempt from scrutiny!

IT AINT AIG THAT IS CRIMMINAL HERE ITS THE CONGRESS AND SENATE!

THE "DADGUM" (I'm trying to use Christian lanuage here) BAILOUT SHOULD NOT HAVE HAPPENED!


People  wrote and said NO to the bailouts and they did it any way! They dont give a rats behind how we feel about anything!

[Cabin4]

These politicians are getting huge contributions from these banks into their campaign funds. They all have a way to chiphen money from their campaign funds for private use.

Oldshooter is correct, they know that bonuses were not included before. This all a charade of cover for the enemies that run our government. The real terrorist are right here and most Americans can't see them because they are hiding in plain sight.

[Heavy C]

Chris Dodd had a clause put in the bailout making the bonuses exempt from scrutiny!

IT AINT AIG THAT IS CRIMMINAL HERE ITS THE CONGRESS AND SENATE!

THE "DADGUM" (I'm trying to use Christian lanuage here) BAILOUT SHOULD NOT HAVE HAPPENED!


People  wrote and said NO to the bailouts and they did it any way! They dont give a rats behind how we feel about anything!

That's exactly right!  I say keep the bonuses.  If I were an employee at AIG and my job was to sell credit default swaps and had to meet a certain quota - I exceed expectations.  I would expect my bonus.  These bonuses were also agreed to by contract.  If Congress gets into the business of voiding contracts at will; then all contracts would be suspect as to their enforcability.

The hypocrits in Congress created this mess and now have the audacity to cry foul and grill Mr. Liddy as though it were his fault.  Their condescending tone is laughable and I hope my fellow Americans hold these men and women acountable in 2010!  The other thing that is scary is the fact that they are looking to specifically tax certain individuals/company to punish which of course is unconstitutional.  This crap makes blood boil!

[Cabin4]

Your absolutly right Heavy C. These employees had a contract and AIG is contractually obligated to pay. All this BS is congress and obamanation lieing to the American public. If our government can void perfectly legal agreements between citizens and their employer are anyone for that matter, we are all it for it. I kinda hope they do try and void these contracts with legislation, it will be proof that this admisisration will support anything to take control of individuals.

[dukkillr]

Your absolutly right Heavy C. These employees had a contract and AIG is contractually obligated to pay. All this BS is congress and obamanation lieing to the American public. If our government can void perfectly legal agreements between citizens and their employer are anyone for that matter, we are all it for it. I kinda hope they do try and void these contracts with legislation, it will be proof that this admisisration will support anything to take control of individuals.

Those contracts can be voided in bankruptcy.  They would have gotten nothing, and lost their job if the government didn't buy up their company.  If they refuse to return the money, I say we let them see how unemployment works for them.

THE GOVERNMENT IS THEIR EMPLOYER.  This is not the same as voiding a contract someone signed with a client.  When businesses fail, and their assets are bought or merged those contracts are often voided... It's usually in the language of the contract... The only difference here is that they were bought by the govt. 

The big picture is that they may do irreparable harm to their long term viability if they refuse to return the money.  If enough people get mad enough, the govt. may refuse to continue even employing them... I hope that's what happens...

[SHOOTALL]

No one would have bought the TITANIC for a reason . Govt. should not own business , how do they keep a stright face when they pass new laws that affect the others in the same industry ?
AIG , GM all the others should have either been allowed to re organize with limited protection or allowed to fail . It would only make room for new sound companies to invest and end BS obligations the rest of us are footing the bill for .

[Cabin4]

AIG should pay the bonuses to its employees if the employee met the provisions of the contract. Just because AIG as a corporation is in the toilet, does not mean all its employees are failures. Many people work at a low salary and get compensated for producing via bonuses. If the bail out money came with strings attached and AIG was prohibited from paying those bonuses, then the bonuses should not be paid. It’s my understanding that the bail out money did not have those strings attached, AIG is not in bankrupsy, so the employees should get their money, weather we like it or not.

The government gave the bail out money to AIG so they could continue paying it’s obligations and continue to operate. The bonuses are part of those obligations. Like it or not and believe me, I don’t like it but a deal is a deal. You can’t rewrite agreements post signing just because one party decides they no longer like the deal they originally agreed to.

[Oldshooter]

THE GOVERNMENT IS THEIR EMPLOYER.  This is not the same as voiding a contract someone signed with a client.  When businesses fail, and their assets are bought or merged those contracts are often voided... It's usually in the language of the contract... The only difference here is that they were bought by the govt. 

Those contracts can be voided in bankruptcy.

Sir you are not reading, The Govt(Chris Dodd& coconspirators) that bailed em out wrote into the bailout that they could have the bonuses. And they are not in bankruptcy!  They should be but they aint!

I dont think they should have been bailed out, but the fools in Washington bailed them out and put in a clause that exempted the bonuses from Government scrutiny!

Now they are acting like they did not know all along about that because it aint flying and they are afeard of getting thrown out! Geitner, Obamas Treasury Secretary scripted the whole deal. so i know he knew about it also!

Show some case law that says you can not give a bonus that you are contractually obligated to do!  Obviously they met the criteria for the bonuses.

I dont like it but it is the law and  and the keystone cops in washington wrote the script and have known all along that the bonuses were coming!

[Redtail1949]

No sir, they do not deserve it and they should not have gotten it. However, more importantly than that is "CONTRACT LAW" it must be honored. If Bankrupcy had been fil;ed they could have been voided, however, it was not to be. Bankrupcy in this case could be a total disaster in the world economy and i do believe it would bring about a much worse effect than not.

I hate it and most Americans hate it also but we must be careful not to cut off our nose in spite of our face.

The real deal that needs to be uncovered here is the the Dodd story. He openly lied by saying he knew nothing of it and looked stunned that anyone would ask him such a question. Then turned around just about 1 hour ago and admitted it was he that put the changes in allowing it to happen then said Obama and the Fed and Treasury knew all along about it.

That is the real story here.. in your face lies by Dodd Obama and the rest to the American people. The only reason he admitted it was the heat was so great he knew that repoters and others were not going to let it go.

So now lets see what Obama says now that he has once again been exposed as a fraud and lier and all his cronies.

"Change to Socilalist Government and corruption to the eyeballs" man thats real change you can believe in.

[FWiedner]

I believe that the AIG bonus brouhaha is a diversion to draw attention from something else that they are doing.

Why not focus the fabricated national anger on something, just to keep it rolling.  After all, people rarely think when they're pissed off.

Then again, why should I even give a d@mn about a pile of money from which neither I or anyone I know will ever see a dime?

It may be "news", but who cares?