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Embattled AIG Hoping to Avoid Backlash When Paying Out More Bonuses
July 09, 2009 10:16 PM
ABC 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
July 9, 2009 | Permalink | Share | User Comments (48)
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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 | Jul 9, 2009 10:36:47 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 | Jul 9, 2009 10:37:29 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 | Jul 9, 2009 10:54:04 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 | Jul 9, 2009 11:00:25 PM
These yahoos just won't get it till a lynch mob shows up at their doors with torches and pitchforks...
Posted by: 1enlightened | Jul 9, 2009 11:17:25 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 | Jul 9, 2009 11:29:06 PM
Why do I see a screwup redux coming?
Because they just can't help themselves
.....they CAN'T!
Posted by: Trajan | Jul 9, 2009 11:53:05 PM
Uh...save the pitchforks and torches.
This is Obama and his crusaders allowing
the bonuses. Hope and change my..........
Posted by: Trajan | Jul 9, 2009 11:57:07 PM
No. Just.....no.
Posted by: Jaylah | Jul 10, 2009 12:29:07 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 | Jul 10, 2009 1:16:03 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 | Jul 10, 2009 1:38:45 AM
NO MORE BAILOUTS, NO MORE STIMULUS PLANS, NO MORE BONUSES.
Posted by: Kaizer | Jul 10, 2009 2:38:10 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 | Jul 10, 2009 2:48:58 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! | Jul 10, 2009 3:55:16 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 | Jul 10, 2009 5:42:44 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 | Jul 10, 2009 6:19:53 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 | Jul 10, 2009 7:45:42 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 | Jul 10, 2009 7:50:05 AM
The best way to describe these executives is to say that, they are both shameless and corrupt.
Posted by: Sam | Jul 10, 2009 7:50:49 AM
As a stock holder (taxpayer) - I vote no.
Posted by: jamescbuilder | Jul 10, 2009 8:42:40 AM
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