Wednesday, October 14, 2009

Here We Go Again: Annual Bonuses

by Dick Mac

AIG, the insurance behemoth that played a major role in destroying the economy of Western Civilization, is preparing to give monetary bonuses to staff. How much? $235,000,000.

AIG is a welfare recipient and it baffles me that they have two hundred million dollars to give away. If an individual welfare recipient is seen eating at McDonald's, so-called "conservatives" are out of their minds about welfare queens stealing tax dollars and redouble their efforts to eliminate social welfare programs.

This welfare queen, AIG, suffers little criticism and continues to profiteer with impunity.

In reality (not that reality holds any sway with "conservatives"), AIG is a failed company that should have been auctioned off, lock, stock and barrel, to the highest bidders. Instead, the executives who run the company accept taxpayer money, continue operations as usual, and skim whatever they can for themselves and their closest colleagues.

We will be told that these bonuses are contractual obligations, and I understand that. This points to the overall problem about how financial institutions pay their executive, and I discussed that a couple of weeks ago: pay them what they deserve and give them bonuses when they perform exceptionally (See, Limiting Pay.)

AIG can break those contracts. The executives failed and they should not receive bonuses: contract or not. I would rather AIG spend the $235 million on legal fees defending lawsuits from executives who sue for their contractually-obligated bonuses than to just give the money away and reward those who have destroyed our economy.

Financial institutions have to change the paradigm they use to pay their management. If the CEO deserves $25 million, then pay her the twenty-five million; don't pay her five million then give her a $20,000,000 bonus! It's disingenuous at best, immoral at every level, and possibly fraudulent.

If the financial industry won't change itself, then they will watch Congress make the changes for them.

This makes the people running that industry stupid. STUPID!

Put your house in order! The taxpayers are not going to stop looking.

But, do they need to do anything? Probably not, because they ARE the "conservatives" who support this disaster. The so-called "conservative" working people who were tricked by Ronald Reagan into voting against their own best interests, will complain about abortion and homosexuals, ignore the pillaging of their Treasury, and vote for the guys who will funnel their tax dollars to these guys at AIG!

Who are the fools here?

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