Tuesday, March 24, 2009

AIG – Returning $80 million

Do you believe that the Executives should be made to HAVE to return the money they received as bonuses? The same people who received the bonuses are the same people responsible for the destruction of the company. The government had just given the company $170 billion in bailout money and it seems as though they used this money to award themselves. The bonuses ranged from $1,000 to almost $6.5 million. New York Attorney General Andrew Cuomo said that AIG paid bonuses of $1 million or more to 73 employees, including 11 who no longer work there.

These statements were taken from the AP –Associated Press:

“Chief Executive Edward Liddy expressed concern that the company may not be able to attract and retain talented employees if they believe their compensation is subject to adjustment by the Treasury.”

“About 400 employees and future employees in AIG's financial products division received bonuses. Documents provided by AIG to the Treasury Department said the awards ranged from $1,000 to nearly $6.5 million. Seven employees were to receive more than $3 million. Last week Cuomo said AIG paid bonuses of $1 million or more to 73 employees, including 11 who no longer work there.”

Last week the House passed a plan to tax 90 percent on bonuses paid to those employees of AIG whose income is more than $250,000. However Obama has disagreed with the tax bill.

So, do you believe that the Executives of AIG should have to return the money they received as bonuses? Should the contracts that they signed be taken into consideration?

1 comment:

hollybeth75 said...

OMG I have a big time opinion on this. Ok first of all there are several different issues here. The first is that it is absolutely unconstitutional to make anyone (executives or otherwise) give back this money. Article 1, Section 9, Clause 5 - United States Constitution
"No bill of Attainder or ex post facto law shall be passed."
Do you know what that means? The key is the word "attainder." Let's go to Webster’s: It's a 15th century word meaning "extinction of the civil rights and capacities of a person upon sentence of death or outlawry usually after a conviction of treason." A definition, this one from the Catholic Encyclopedia, describes "bill of attainder" thusly: "A bill of attainder may be defined to be an Act of Parliament for putting a man to death or for otherwise punishing him without trial in the usual form. Thus by a legislative act a man is put in the same position as if he had been convicted after a regular trial."
Well, in this case the Congress isn't trying to put anyone to death ... they're just trying to steal some money. They are trying to deprive some individuals of property that is rightfully and lawfully theirs without accusing them of a crime and without the benefit of any trial ... except, that is, for this trial that has been taking place in the media for the last week. Well, there's that pesky little Constitution again. A man cannot be deprived of life, liberty or property without due process, and in our country due process means a trial before a jury of one's peers. Barney Frank et al are trying to take these people's money through legislative action without a trial. I would truly hope there isn't a federal judge in this country that wouldn't smack this idiocy down at the earliest opportunity.

So lets back up a bit. Do I believe the Executives should have received this bonus money? Well yes and no. It was legally in their contract before all this went down, so because of that, yes. But because it was tax payers money, I take issue with it. So with that said, The legislatures who wrote the bill should have taken care of this. Should put some conditions and attached some strings if you know what I mean. These law makers are having to explain why they didn’t read this whole bill and can’t explain their way out of it. They are embarrassed that it is their fault but are finger pointing at AIG only. Well you know what people? Take a long hard look at your congress men/women and senators and decide if you still want them in office next election because they are seriously effing things up. I blame them not the executives who were taking a bonus that was in their contract.

And FYI Obama’s administration wants the government to have the right to seize any company that is in AIG’s condition. I just think that sounds a lot like communism, and all I have to say is I told you so.