Originally Posted by Jae Onasi
I'd love to have a job where all I have to do is show up to get a bonus, even if the company is tanking around me.
The bonuses are mostly in return for pay cuts - the executives decided that instead of making $∞/year, which looks bad, they would only make $(.5∞)/year and then take another .4∞ at the end of the year as a bonus.
Originally Posted by Jae
I think the government is well within its rights to say 'we're giving you a buttload of cash, but you're not allowed to spend it on bonuses, extravagant parties and retreats, or private jet travel'. I'm happy Congress apparently is going to tax their bonus money at some gawdawfully ridiculous rate (I heard 90%) so that we taxpayers aren't stuck paying for ridiculous bonuses that they never would have had anyway if AIG had been allowed to go under.
Whereas I believe that this (the taxation) is ridiculous. The government is abusing a bit, IMHO. The bonuses were granted to them by their contracts, so why can't Congress keep their hands out of it? I mean, seriously, I'm pretty liberal, but now they're interfering because they don't like how their first interfering is working out!
The people are granted their bonuses, I don't think the government has a right to take that away all willy-nilly like.
Do I think that this should be occurring? No, but we reap what we sow. This is how the system we designed is set up, and therefore, this is the way we should run it.
If we didn't like how the company was run, we should never have bailed them out in the first place.
Also, what do you care? AIG promised to pay back every cent. Now, if the bailout does what it was designed to, which is save AIG, then it won't matter to you because your "taxpayer dollars" (which you were going to give up anyway, but are now just going to a different end location) will be fine. If that's the case, and they'll repay, then let them run the company. If they tank anyway, and don't repay, then all
of your taxpayer dollars are out the window, no matter what they were spent on.
FTR, these bonuses are comparatively trivially sized in relation to the bailout (it's like 0.02% or something).