I'm sure everyone has heard that despite the current economic climate in the country, AIG, which received a $182 billion bailout last year, still proceeded to awarded executives large bonuses. However, due to government pressure and societal outrage $165 million dollars has been returned. The Obama Administration says they cannot be blamed for the lack of stipulation that was put on the bailout but they will not repeat that mistake in the future. This brings up questions of government regulation. Do you think AIG should be under scrutiny and how much, if any, do you think the government from here on out regulate the country's economics?
http://www.newsweek.com/id/189515/page/1
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I just read an article about this too, and I must say, I am so incredibly disappointed in Geithner and AIG. Enough is enough. How could Geithner not realize AIG was spending that kind of money on bonuses? And how could AIG actually think it was okay to distribute these said bonuses?
ReplyDeleteThese financial excutives need to mellow out and focus on rebuilding their companies, and not being rewarded for their immoral behavior and bad work in the office. So many people in the workforce are working so hard now to save their job, and are settling for less pay and more hours. These guys are doing poorly and expecting trips to St. Bart's and to sip champagne.
I agree both with what Morgan and Lauren are saying here. It is a big ridiculous that AIG used $165 million of bailout money for bonuses!
ReplyDeleteI understand that the use of bonus as compensation is a managing strategy with getting your employees to work harder, but I am sure that some of those bonuses were a lot more money than they needed to be, as well as undeserving of some top executives. There are always people who get them just for being high up, and they might not have even done much.
I think that with what money the government gives to companies to help the bailout should be regulated, because then we are just wasting money. We should not; however, regulate other companies who are not turning to the government for help as they are probably doing fine with their own methods.