The AIG situation

[theenforcer]

People are commenting on this thing left and right. For those who may not be familiar with the situation, the government recently provided AIG with an additional 30 billion dollars to keep the 120 billion they'd already been awarded company. As part of a contract that was drawn up well in advance of the economic crisis, AIG awarded $165 million in

Comments

[backguy]

I think that you've basically summarised my thoughts on the bailout/bonuses issue. Good work, sir.

[titi_grominet]

Nice summary. I wholeheartedly agree.

[quikchange]

http://www.nytimes.com/2009/03/25/opinion/25desantis.html?_r=1&em=&pagewanted=all

Apparently many of the people being paid were doing things unrelated to what caused the problems.

[theenforcer]

Why anyone, directly related or not, feels that they are entitled to be paid a bonus from a bankrupt company is beyond me. If my company is going to go under, it's probably best for my future for me to forego my bonus right now so that I can continue receiving a salary tomorrow. Unless the government is just going to shove more money at my company, in which case, waaaah, I want my damn bonus!

The guy who wrote the letter apparently agreed to reduce his salary to $1 even though he was not responsible, and then received a bonus of $742,006.40 after tax. Sounds to me like reducing his salary was kind of an empty gesture in the first place.