AIG-new round of bonuses after the bailouts

[Thump553]

Yet again, don't these clowns ever learn?

AIG-$165 million in new bonuses

Management's defense is that these bonuses are legally obligated, that they were negotiated before the collapse. Sounds to me like a good argument for bankruptcy-where those contracts could be voided.

I was solidly behind the bailouts until recently, but it now appears to me that the cancer that is the management of these firms can only be cured through the tough love of a Chapter 11 preplanned filing.



Repost

Hayabusa Rider AnandTech Senior Moderator

 

[PliotronX]

Originally posted by: Thump553
Yet again, don't these clowns ever learn?

They are, it's just the wrong lesson. Wouldn't you too live it up if you knew there was no way you wouldn't be bailed out because of the scope of your global economic reach and tangled web of fubar?

 

[Hacp]

REEEEEPost

 

[blackangst1]

Originally posted by: Thump553
Yet again, don't these clowns ever learn?

AIG-$165 million in new bonuses

Management's defense is that these bonuses are legally obligated, that they were negotiated before the collapse. Sounds to me like a good argument for bankruptcy-where those contracts could be voided.

I was solidly behind the bailouts until recently, but it now appears to me that the cancer that is the management of these firms can only be cured through the tough love of a Chapter 11 preplanned filing.

They are. Its no different than withholding salary.

 

[waggy]

Originally posted by: Thump553
Yet again, don't these clowns ever learn?

they have. they have learned that they can do anything and the goverment won't do a damn thing besides give them more money

 

[nobodyknows]

Originally posted by: blackangst1

Originally posted by: Thump553
Yet again, don't these clowns ever learn?

AIG-$165 million in new bonuses

Management's defense is that these bonuses are legally obligated, that they were negotiated before the collapse. Sounds to me like a good argument for bankruptcy-where those contracts could be voided.

I was solidly behind the bailouts until recently, but it now appears to me that the cancer that is the management of these firms can only be cured through the tough love of a Chapter 11 preplanned filing.

They are. Its no different than withholding salary.

So?

My understanding is they are retainer bonuses. If they don't get them let them go someplace else.... and good riddance to them.

 

[GeezerMan]

Originally posted by: nobodyknows

Originally posted by: blackangst1

Originally posted by: Thump553
Yet again, don't these clowns ever learn?

AIG-$165 million in new bonuses

Management's defense is that these bonuses are legally obligated, that they were negotiated before the collapse. Sounds to me like a good argument for bankruptcy-where those contracts could be voided.

I was solidly behind the bailouts until recently, but it now appears to me that the cancer that is the management of these firms can only be cured through the tough love of a Chapter 11 preplanned filing.

They are. Its no different than withholding salary.

So?

My understanding is they are retainer bonuses. If they don't get them let them go someplace else.... and good riddance to them.

Not so fast there. If these key employees don't get their bonus, then they could leave. Then AIG would spend millions searching for new key employees to run the company into the ground again. Smart companies in the future will make sure they are too big to fail, and then make sure they do fail, over and over, to get more bailouts.

 

[MovingTarget]

Since the gvt is committed to save AIG no matter what, can they go ahead and ensure that they are split up into multiple, smaller companies so that we don't end up in this 'too big to fail' position the next recession/depression?

 

[nageov3t]

Originally posted by: GeezerMan

Originally posted by: nobodyknows

Originally posted by: blackangst1

Originally posted by: Thump553
Yet again, don't these clowns ever learn?

AIG-$165 million in new bonuses

Management's defense is that these bonuses are legally obligated, that they were negotiated before the collapse. Sounds to me like a good argument for bankruptcy-where those contracts could be voided.

I was solidly behind the bailouts until recently, but it now appears to me that the cancer that is the management of these firms can only be cured through the tough love of a Chapter 11 preplanned filing.

They are. Its no different than withholding salary.

So?

My understanding is they are retainer bonuses. If they don't get them let them go someplace else.... and good riddance to them.

Not so fast there. If these key employees don't get their bonus, then they could leave. Then AIG would spend millions searching for new key employees to run the company into the ground again. Smart companies in the future will make sure they are too big to fail, and then make sure they do fail, over and over, to get more bailouts.

more importantly, said employees could sue AIG for their contractually obligated bonuses, likely win as long as AIG doesn't go bankrupt, and then AIG would be out both the bonus money and whatever it has to pay its lawyers.

 

[GeezerMan]

Originally posted by: loki8481

Originally posted by: GeezerMan

Originally posted by: nobodyknows

Originally posted by: blackangst1

Originally posted by: Thump553
Yet again, don't these clowns ever learn?

AIG-$165 million in new bonuses

Management's defense is that these bonuses are legally obligated, that they were negotiated before the collapse. Sounds to me like a good argument for bankruptcy-where those contracts could be voided.

I was solidly behind the bailouts until recently, but it now appears to me that the cancer that is the management of these firms can only be cured through the tough love of a Chapter 11 preplanned filing.

They are. Its no different than withholding salary.

So?

My understanding is they are retainer bonuses. If they don't get them let them go someplace else.... and good riddance to them.

Not so fast there. If these key employees don't get their bonus, then they could leave. Then AIG would spend millions searching for new key employees to run the company into the ground again. Smart companies in the future will make sure they are too big to fail, and then make sure they do fail, over and over, to get more bailouts.

more importantly, said employees could sue AIG for their contractually obligated bonuses, likely win as long as AIG doesn't go bankrupt, and then AIG would be out both the bonus money and whatever it has to pay its lawyers.

yeah, I know, it was a satirical comment

 

[Acanthus]

Originally posted by: MovingTarget
Since the gvt is committed to save AIG no matter what, can they go ahead and ensure that they are split up into multiple, smaller companies so that we don't end up in this 'too big to fail' position the next recession/depression?

Yes, because of antitrust laws.

 

[miketheidiot]

aig made some stupid calls, but imo would not have been in nearly as bad off had lehman not got under.

 

[nobodyknows]

Originally posted by: GeezerMan

Originally posted by: loki8481

Originally posted by: GeezerMan

Originally posted by: nobodyknows

Originally posted by: blackangst1

Originally posted by: Thump553
Yet again, don't these clowns ever learn?

AIG-$165 million in new bonuses

Management's defense is that these bonuses are legally obligated, that they were negotiated before the collapse. Sounds to me like a good argument for bankruptcy-where those contracts could be voided.

I was solidly behind the bailouts until recently, but it now appears to me that the cancer that is the management of these firms can only be cured through the tough love of a Chapter 11 preplanned filing.

They are. Its no different than withholding salary.

So?

My understanding is they are retainer bonuses. If they don't get them let them go someplace else.... and good riddance to them.

Not so fast there. If these key employees don't get their bonus, then they could leave. Then AIG would spend millions searching for new key employees to run the company into the ground again. Smart companies in the future will make sure they are too big to fail, and then make sure they do fail, over and over, to get more bailouts.

more importantly, said employees could sue AIG for their contractually obligated bonuses, likely win as long as AIG doesn't go bankrupt, and then AIG would be out both the bonus money and whatever it has to pay its lawyers.

yeah, I know, it was a satirical comment

It might be hard for them to argue in court that they deserve their bonus when the company they work for has lost it's ass.

 

[Craig234]

Originally posted by: nobodyknows
It might be hard for them to argue in court that they deserve their bonus when the company they work for has lost it's ass.

Not really.

 

[nobodyknows]

Originally posted by: Craig234

Originally posted by: nobodyknows
It might be hard for them to argue in court that they deserve their bonus when the company they work for has lost it's ass.

Not really.

Then Thump has it right. Stop the bailouts and then let these people sue. If the company is broke, good luck getting anything out of them.

 

[nobodyknows]

Ripped from the other AIG thread:

Originally posted by: RightIsWrong
Those claiming that the contracts are the driving force behind these bonuses didn't actually read carefully enough to see that they they were "retention" bonuses. If the "talent" (and I use that term in the loosest of manners) were not retained, there is not contractual obligation to pay the bonus.

The "talent" can then go and try to find work with the tens of thousands of other out of work financial professionals and AIG can hire their replacements from the vast pool of "talent" that ran the like of GS and LEH into the same boat that they are because of the same, shared flawed mentality.