STOP THE MADNESS

$165 million in bonuses for AIG?!?! Will the madness ever stop?

I will not even go into all the issues with bailouts, TARP, and lack of government oversight. That is a different topic. This is solely about bonuses and compensation, which is out of control.

How did this company develop a bonus plan that made them contractually obligated to pay bonuses even if the company had the largest quarterly loss in history? I thought bonuses were funded by profits and paid for meeting or exceeding profit targets. Obviously, not at AIG.

Where is the Board of Directors? Where is the compensation committee? Shame on everyone! Shame also on the politicians who are now all shocked and outraged but gave them taxpayers money (under both administrations) without making sure this could not happen.

See also Mike's posts on AIG and one specifically on the bonuses.

Until next time,
Gail