The bonuses paid as "retention bonuses" are nothing of the sort. Eleven (11) of the people receiving them no longer work for AIG which I believe would be the opposite of retention.
According to Cuomo's office the following details were revealed when the contracts were examined:
- The top recipient received more than $6.4 million;
- The top seven bonus recipients received more than $4 million each;
- The top ten bonus recipients received a combined $42 million;
- 22 individuals received bonuses of $2 million or more, and combined they
received more than $72 million; - 73 individuals received bonuses of $1 million or more; and
- Eleven of the individuals who received "retention" bonuses of $1 million
or more are no longer working at AIG, including one who received $4.6
million;
Again, these payments were all made to individuals in the subsidiary whose performance
led to crushing losses and the near failure of AIG. Thus, last week, AIG made more than 73
millionaires in the unit which lost so much money that it brought the firm to its knees, forcing taxpayer bailout. Something is deeply wrong with this outcome. I hope the Committee will
address it head on.
We have also now obtained the contracts under which AIG decided to make these
payments. The contracts shockingly contain a provision that required most individuals' bonuses to be 100% of their 2007 bonuses. Thus, in the Spring of last year, AIG chose to lock in bonuses for 2008 at 2007 levels despite obvious signs that 2008 performance would be disastrous in comparison to the year before. My Office has thus begun to closely examine the circumstances under which the plan was created.
More details are available including a scan of the letter from the New York Attorney General are available on Huffington Post.
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I just received this in an email...Best Idea I've Heard of yet!!................................................................................................... "This was an article from the St. Petersburg Times Newspaper on Sunday."
"The Business Section asked readers for ideas on "How Would You Fix the
Economy?" I thought this was the BEST idea....I think this guy nailed it!
Dear Mr. President,
Patriotic retirement:
There are about 40 million people over 50 in the work force - Pay them
$1 million apiece severance with the following stipulations:
1. They retire immediately. Forty million job openings - Unemployment
fixed.
2. They buy NEW American cars. Forty million cars ordered - Auto
Industry fixed.
3. They either buy a house or pay off their mortgage - Housing Crisis
fixed.
It can't get any easier than that!
P. S. If more money is needed, have all members in Congress and their
constituents pay their taxes."
, In the meantime the people who have receive these bususes must be made public so the remaining public can haunt them with non-stop sales pitches to "trickle down" their wealth into the middel class. All I know is if you gave me just 1/4 of a million ($250K) I could live fat for the rest of my life. (I, otherwise am in favor of abolishing capitalism and instilling a socialist society intolerant of greed and corruption, carrying the death penalty for both if found guilty
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