So this morning, we learned that AIG is planning to pay bonuses today with the latest money they received from the bailout. I just don’t get it. Clearly this has not been a well run company. But, despite this their response is:
1) They need to pay these amounts because they were promised.
2) They need to pay to continue to have the best and the brightest work there.
3) It is going to employees at all levels so it’s really a sort of profit sharing.
It seems that $165 million in bonuses is way to big a number to let this slide. The company is only still around because the government has taken over what looks to be 80% of it. If it’s a deal breaker, give the stimulus money back. AIG is now on the government dole is the same way welfare recipients have needed to be. What is the reaction when it’s found that a "welfare cheat" bought cigarettes and alcohol with their relief? My guess is that the best and the brightest were outraged.
These bonuses don’t smell right. It’s time that the companies ownership said no.
