AIG is asking the government for permisssion to give out more bonuses

July 9, 2009 – 12:31 pm – No Comment

Everyone’s favorite business to hate is now looking to ask the government to pay out $2.4 million in bonuses to executives at the company. This comes after just a few months ago, the company green-lit several hundred million dollars in bonus money that started a huge backlash against the company.

The company is hoping by asking the government to approve the bonuses, it can avoid the public outrage again. I think that right now, the government is not the place where the “public” has a lot of faith right now as far as large corporations go.

At least they are asking for permission before just handing out millions of dollars to executives. The company doesn’t actually need the permission of Kenneth Feinberg, the overseer of the compensation of top executives of seven of the largest companies that received federal bailouts. The $2.4 million in bonuses would go out to about 40 of the highest ranking execs at AIG.

“Anytime we write a check to anybody” it is highly scrutinized, said an AIG official, who declined to speak on the record because the negotiations with Feinberg are ongoing. “We would want to feel comfortable that the government is comfortable with what we are doing.”

In November, AIG’s top seven executives, including Chairman Edward M. Liddy, agreed to forgo their bonuses through 2009. Then, in March, facing pressure from Treasury Secretary Timothy F. Geithner and other government officials, the company restructured its corporate bonus plans for the remaining top 50 executives. As part of this agreement, the senior executives were to receive half their 2008 bonuses — which totaled $9.6 million — in the spring, with another quarter disbursed on July 15 and the rest on Sept. 15. The last two payments would depend on whether the company made progress in revamping its business and paying back bailout money to taxpayers.

So, here we go, a large corporation going back on their word…are we really surprised? I’m not. Especially when it’s a company that is the epitome of greed and what is wrong with our capitalist system. It’s companies like this that make everyone else look bad. I’m not saying that capitalism or the free market is wrong, but when you have this much wrong with one company…things go very wrong in a big way.