After Rescue, Bonuses Still Flow At AIG

The Early Show: Insurance Giant Offers Top Employees "Retention Payments" To Keep Them

(CBS)  Insurance giant AIG was given $152 billion in bailout money by the federal government since nearly collapsing in September. Now the company is planning to take millions of that money and hand it over to employees in a program that sounds a lot like bonuses.

AIG's new CEO is only taking a single dollar for his compensation this year and the top 60 executives won't be getting bonuses. But that hasn't stopped AIG from finding a creative way to keep some of their top employees in what they're calling "retention payments," reports CBS News correspondent Priya David.

To some it seems like business-as-usual end-of-the-year bonuses.

On Wednesday, lawmakers grilled Assistant Treasury Secretary Neel Kashkari about AIG's bonus plan. Rep. Donald Manzullo, R-Ill., asked if a $3 million bonus was too much.

"It is excessive for a failing institution, yes," said Kashkari.

But so far, no one's stopping AIG from paying millions to some employees in its new retention program. The company has told 168 employees they'll receive between $92,500 and $4 million per individual if they stay with the company for one year. That angers some on Capitol Hill.

"These so-called retention payments are nothing less than bonuses," Rep. Elijah E. Cummings, D-Md., told CBS News. He sent letters to AIG, demanding details of the retention program.

"No one is indispensable, particularly when you've got tens of thousands of people being laid off from Wall Street and financial firms every day," Cummings said.

Nicholas Ashooh, AIG's senior vice president of communication, acknowledges that the perception of his company has taken a hit.

"Oh, it's terrible, it's terrible," he told CBS News.

Ashooh said the retention program does not include anyone in the firm's financial products business, the tiny arm of the company that torpedoed AIG with its high-risk, bad loans.

"We know that this is not a popular thing. A lot of people just won't accept it, but if you think about it, it's a calculated decision to keep businesses intact so that we can sell them and pay back taxpayers what we owe them," he said.

Whatever you call it, it's still money in the pocket of AIG managers.

"It's very unfortunate, but a culture of entitlement has emerged among Wall Street executives," said Peter Morici, a University of Maryland economist. "They're paid far too much money and they're trying to find ways around the rules."

Even though there are more layoffs every month, AIG says its top talent is being recruited to rival companies. In fact, the company says two of its top people just left this week, despite being offered big retention payments. AIG says it needs its best people to keep its healthy businesses profitable until it can sell them and the company plans to sell 65 percent of its businesses to repay its federal loan and get back on track.

[omega40]

Wall street cheered as corporations dumped American workers and headed overseas but somehow we''re to believe that the baboons that ran AIG into the ground in the first place are too important to lose.

[endurorob]

A-Moral would be stating it lightly.

[biblethumpar]

Retention for top talent?
top Talent at what?

[endurorob]

I think it might be getting old blaming this recession on CEOs. Its pretty apparent thats its a more ecumenical phenomenon.


Posted by william3361

They may not be entirely responsible for the financial problems of this country but recieving or handing out bonuses for a failing business is ridiculous and when it is on the tax payers dime it should be criminal.

[bossman1960]

as a tax payer aig need to be fine or jail for miss use of tax payer money i dont get million dollars bones or raise i cant keep my door open on my shop i dont see no hand out to me johnny glover l.r. arkansas

[endurorob]

Retention for top talent?
top Talent at what?


Posted by Biblethumpar

Considering all the layoffs on wall street it shouldn''t be too hard to somebody else to do bad work.

[evian_ycnan]

$250 BILLION and NO ONE thought to get a receipt?!

You just know that in all of this, somewhere, at some time, there was a gov`t employee standing in a parking garage with two suitcases full of $100s and he just handed them over to some guy.

Had to have happened.

[whatchange-2009]

We, as a nation, told the Congress to not bailout Wall Street. An American way of life is about to die. No more incumbent Congress next term. Let Wall Street and Big 3 Auto die.. I''ll not give 10 cents to a wealthy AIG exec without a left hand to his face along with it. Our government is full of thieves, liars and Muslims. I''m sick of it.

[omega40]

This is the text of the 1886 Supreme Court decision granting corporations the same rights as living persons under the Fourteenth Amendment to the Constitution. Quoting from David Korten''s The Post-Corporate World, Life After Capitalism (pp.185-6):

In 1886, . . . in the case of Santa Clara County v. Southern Pacific Railroad Company, the U.S. Supreme Court decided that a private corporation is a person and entitled to the legal rights and protections the Constitutions affords to any person. Because the Constitution makes no mention of corporations, it is a fairly clear case of the Court''s taking it upon itself to rewrite the Constitution.


I can only surmise by the above ruling that I also then have the same rights as a corporation.

Since times are tough, and my finances are taking a battering...I shall be calling on my congressman for a bailout.

[epagels]

This is ***! Retention payments? What about the thousands of average people that won''t be able to pay their mortgages this Christmas? What about the thousands of people that will be at home collecting unemployment just to find out their short on monthly payments? And the talent that AIG wants to retain is the talent that put them into this mess! Let em go! Start a new plan to make your company better than before. Offer some of those lower on the totem-pole people an opportunity to excell. GET CREATIVE. DON''T PAY THESE CLOWNS ANOTHER DOLLAR!

[skeezix06]

This makes me angry yet again. By the way, when do we get around to cutting Congressional salaries, benefits and perks? Seems to me when the little guy is taking a K.O. on the chin that the "big guys" could afford to take a hit as well.

What''s sauce for the goose is sauce for the gander and all that...

[bronco602]

RETENTION BONUS? I guess the economy must be booming and people must what to go get all those jobs that are available. Last I checked, people are being laid off from almost every company. I''m sure people on welfare would be more than happy to take jobs at AIG now that it was bailout. If I would get a retention bonus, I''m there.

[biblethumpar]

I am so glad to see the AIG executives continuing to recieve their well deserved bonus. The little people just dont understand.


--------------------------------------------------------------------------------

Posted by mrs_premise ..

LOL......

[mhw1063]

MRS PREMISE IS A MORON AND A SLEEP YOUR WAY TO THE TOP HO

[docpeter1953]

Geemonee! Ok, so their "top talent" is being paid "retention payments" to stay on for one year, between $92.5K and $4M?

Big Three is also looking for a handout. I am broke, have a worthless job, need to pay my creditors, but hey what''s another $100K out-of-pocket to me. I guess when they come and demand that I pay what I owe I think I will tell them to ask the govt. for it. Seems that the govt has all the $$ they need. I will pay the govt. back, some day, and not give myself a "retention bonus."

All of this is past rediculous and is/has become absurd and disgraceful. We the taxpayer are footing the bill so the rich and powerful can remain the rich and powerful while we remain in serfdom.

[sincity_q]

It''s just a little mind over matter... they don''t mind because we don''t matter.

The election is over. The politicians and banks don''t give a flying rat''s boonkie about what we think... we really just don''t matter.

[docpeter1953]

I am so glad to see the AIG executives continuing to recieve their well deserved bonus. The little people just dont understand.

Posted by mrs_premise at 08:35 AM : Dec 11, 2008
________________

Good Morning GOP. Glad to see you are here trolling again today. See you have gotten a few bites already.

[rob416]

This is what happens when the Government gives and/or loans Federal taxpapyer dollars to a Corporation without having any rules as to how they use the money.
Henry Paulson along with others at the Treasury Dept. can take the blame for that. After all they administered the loans to AIG.

What I have a difficult time understanding is AIG could not be allowed to fail, but with the auto companies bailout it seems alright for many in the Senate who still oppose it. In the case of the auto industry, millions of job would be loss, whereas far less would have be loss if AIG failed. You don''t think that Paulson thought it more important to help his buddies on Wall St than in Detroit or elsewhere?

[docpeter1953]

Yes they need the retention bonus otherwise the people will leave to go to their competition.

Posted by mrs_premise at 08:43 AM : Dec 11, 2008
_______________

And we all know that it is more improtant to keep the incompetent during times of a failing business model that to hire new thinkers who might improve the bottom ine.

[docpeter1953]

Now that the banks got their bailout, the loosen up on the loaning of their money a little more. Insurance was the next priority. And the auto industry? Well, now they''''re going to finally build fuel efficient cars.

Posted by william3361 at 08:49 AM : Dec 11, 2008
_______________

No, that would violate their current failing business model and not allow the CEOs to get their "retention bonuses." You have it all wrong. You can''t milk the system without first having the taxpayer cow. You are trying to get rid of the cow.

[slim1h2o]

Retention Payments?

JUst where is an employee going to go, if he/she decides not to take these payments?

No where, there''s no jobs out there to be had, they''ll take that bonus money and stay.

Of course...

[walt1944-2009]

We, the taxpayers, have handed over $150 BILLION to AIG to, allegedly, "keep them afloat".

Their corporate executives have used that money to have weekend jaunts at plush resorts, and now plan on awarding their executives "bonuses" for all the mistakes they have made, under the guise of calling it "retention pay"!

This, of course, is all to be expected under the plan of the 3 "stooges" of finance (The Great Emperor Bush II, Hank "Old Baldy" Paulson, and Ben "Fuzzy Face" Bernanke) which simply reads "I CHEAT ''EM AND HOW!!!"

In this case, it is the average taxpayer which has been "swindeled" by both the 3 stooges and Finance America. When you have both the government and Finance America PLOTTING AGAINST YOU, what can you do????

And now we are being asked to bailout the automakers!

The American consumer could use a "bailout" too, but don''t count on it!!!!

SIG HEIL, I''M THE KING OF THE CON MEN!!!, BUSH!!!

[rafterman1]

===Next bailout industry is pornos..===
Posted by william3361

Something tells me the porno business is doing just fine these days. H3ll, the prono industry could bail out the banks.

[txlakeside]

If it is taxpayer money they should get nothing just like I do! I work for an Educational system, (I work in IT) funded by taxs and we have never been given a "bonus" no matter how well we do! A failing business should definitly not dole out taxpayer monies! This entitlement attitude of the rich needs to be stomped out! No one is indespensible, especially with unemeployment at record highs!

[cattlekate]

""We know that this is not a popular thing. A lot of people just won''t accept it, but if you think about it, it''s a calculated decision to keep businesses intact so that we can sell them and pay back taxpayers what we owe them," he said."

And I am your little huckleberry.

Good god. The looting of the Treasury by the powerful and connected continues.

[easeup-2009]

At least we found out that AIG got our money!

Paulson and the rest of the Bushit thieves won''''t even tell us where $300,000,000,000 of our money went! They gave it away in secret.

Otherwise, we might not have confidence in the Bushits.

News for you bushits--that bird flew away a long time ago.

Posted by jbrown88881 at 09:02 AM : Dec 11, 2008

The bailout is a dem thing--wipe the drool from your chin.

[ofbyfor3]

The simple fact that they are still receiving PAYCHECKS should be enough incentive to remain. To hell with this ''retention pay'' garbage!

[easeup-2009]

wrong mellon brain, it all started with bonehead bush,americas worst president ever. all your lies and smearing wont wash the nightmare, that you supported away clown.

Posted by usadvisor101 at 09:22 AM : Dec 11, 2008

Who controls Congress, *********?

[ofbyfor3]

Maybe next time, you`ll buy American like a real man. Either way, we`re cool with it. -- The Big Three. We don`t need to compete.

Posted by Evian_Ycnan at 08:28 AM : Dec 11, 2008

My Honda was made in the US. My neighbor''s Ford was made in Mexico.

His is constantly in the shop and mine only goes for oil changes and other basics. Nuff said?

[drputt45]

Not a good time to be paying anything extra, no matter what you call it. I doubt that ''retention'' payments are needed right now. Don''t pay them and see where they go. Try to find someone that is hiring!

[adasher1]

easeup, the bailout was a dem thing, as you called it? Um....who runs the US treasury department? Senate and Congress? No %u2013 it%u2019s a cabinet position and the treasury, i.e. the bush administration, provided this bailout plan.

[nolalou]

I have my home owners insurance with AIG, if they can afford to give their employees ''retention'' bonuses, where''s my incentive check, so I don''t switch to another insurance company?

[joenopack]

"The company has told 168 employees they''ll receive between $92,500 and $4 million per individual if they stay with the company for one year."

WOW!! Only in America can you get rewarded for trashing your company! In Russia they shoot you!!

[easeup-2009]

easeup, the bailout was a dem thing, as you called it? Um....who runs the US treasury department? Senate and Congress? No %u2013 it%u2019s a cabinet position and the treasury, i.e. the bush administration, provided this bailout plan.

Posted by adasher1 at 09:27 AM : Dec 11, 2008

uhhhhh......they VOTED on it, didn''t they?

[adasher1]

easeup, the bailout as proposed by bush was a joke. Congress and the Senate CHANGED it so the tax payers would be more protected. Go read it...this is why I HATE people that subscribe to a party, like a little lemming.

[cariboubarbi]

Where are these top employees going to go if they don''t get their "retention payments" courtesy of the U.S. taxpayers?

[usedeqbroker]

I am sick of it. They are all stealing and we are letting them do it... we just don''t run this country anymore... maybe we never did..

[boffo1962]

"Retention" bonuses??

Where are these employees going to go? Last I checked, there are hardly any jobs out there.

Well, looks like they''ll just blow through the money and expect another handout.

[au_fait]

If you have insurance or any other business with them, move your business elsewhere. When asked why, tell them.

[jtdev1]

Did you really think anything would change?

Congrees handed over 700 Billion with no strings attached, No oversite, no nothing...

This is nothing more than Corporate Welfare, one that dwarfs social welfare that everyone complains about.

[cbsnews53]

How unpatriotic. Do you spit on US flags as well?

Posted by mrs_premise at 09:37 AM : Dec 11, 2008

No, but I enjoy spitting on John McCain''s picture!

[observer2020]

This is BS. We need to get that $152 billion back, and tell them to go to hell. They want to play silly little games, then let them do it in the unemployment line.
Posted by IamHungry68

Ditto! That money is supposed to be used to bail them out of trouble...and here they are perpetuating it. They need to go to some sort of bankruptcy class that teaches you how to spend smartly. This is very DUMB! And the government is letting them get away with it. They should have made a Bank Czar to watch over their lousy spending habits.

People: This "person" (and I use that term very loosely) mrs_premise is gop-will-win and all the other "gop"s---she/it is a serious loser and should be ignored. A "non-person" that doesn''t deserve my time to read its posts. And this "person" is supposed to be a "good Christian"--that''s a laugh and a half!

[au_fait]

If you have insurance or any other business with them, move your business elsewhere. When asked why, tell them.

[au_fait]

If you have insurance or any other business with them, move your business elsewhere. When asked why, tell them.

[lyfizgood]

None of this will end until the People make it stop. As long as We allow the misuse of our money, it will just be business as usual. But, and the rich know this, the People are complacent. You know that foreign powers are buying up our country. You know that our jobs are going to other countries. You see our economy going to hell while countries like China are becoming the world giants. But the People do nothing. And until the People do Something, we are doomed. Just my opinion, take it for what it is worth. However, while all of you argue and point fingers at eachother, you''re actually too busy to do Anything about it!

[choptopford]

JAIL TIME FOR ALL

[davicar1]

This is what you get when you blank check a company, and have no rules or regulations regarding their future business practices.
It`s like giving a 10-year-old $100/week allowance...do you think he is gonna spend the money on school supplies and haircuts?

[presjfk]

The government should have acquired 99% of the company, not 80% when they bailed out the company. Secondly, they should have fired all of the top management and had a contract where they would work for $1 a year until the loan was repaid.

Force such a deal on the var companies and I wonder how anxious they would be to have tax payer''s money?

What kind of idiots are negotiating the bailouts?

[sepa2]

Financial sector do not produce any thing, do not add wealth. Their service is to make sure financers are channeled to increase wealth through investment in good companies and new technologies which they have failed miserably. I do not understand why they are paid so much and consider them to be the "brains" behind everything

[schoolmarm22]

I can''t believe the audacity of AIG!! We need to just shut the doors on this institution because the American people will be better off without these crooks. My husband and I are going to college to try to make a better life for ourselves and all we hear is that programs to help regular people are short on funds.I would like to see these corporate swindlers put in jail and make them eat ramen noodles for about 10 years like we have to just to get by.