Posts Tagged ‘AIG’

Well, here we go again. After an incredible $170 billion dollars has already been given to AIG for their bailout, they add fuel to the fire and a slap in the face to every American with their bonus payout program. To the tune of $165 million dollars! Their reasoning is that they are contractually obligated,  and that they do not want to lose the best and brightest from the industry. Where are these so called bright people going to go? Who will hire them? Are they not the same individuals who participated in creating this mess in the first place? I believe they are. CEO


The bonuses will be paid to executives in their Financial Products division. This is the same unit that wrote trillions of dollars’ worth of credit-default swaps that protected investors from defaults on bond backed by subprime mortgages.

Remember, of all financial institutions that have been supported by taxpayer bailout money, AIG has received the most dollars, and honestly it is infuriating as to how the executives are handling this situation. So, what’s next? Who is next and where will it end? Stack of money

Seriously, at what point do you stop rescuing companies and greedy CEO’s and executives that really care nothing about the average person?

Speak up and out, and let me hear your thoughts. We should all be outraged! Write your Congress person and make your thoughts known to this Administration. It is time to use your voice and influence to get America back on track.

I am just saying….”Just let me vent!”

AIG – Bah Humbug!

GM – Ford & Chrysler – Bah Humbug! General Motors

Banks – Bah Humbug!

It seems everyone today is in search of a bailout. Everyone is asking, but the people who really need it -people – everyday, hardworking people like you and me are not! Yes, there is something wrong with this picture.

Yes, I agree there are many industries that are hurting, but the bailout money cannot go very far if everyone keeps putting their hands in the cookie jar. Especially when everyone wants to get their piece of the cookie and then not have any regulation or oversight as to what happens with the money once they have it, like AIG. A company that has hidden where the money is really being spent on lavish outings and retreats, all at the taxpayers expense. How far are they willing to go in paying out bonuses this year for high level executives? I sincerely do not believe they are going to come clean and be open about where the money is really going.

It is a shame…..I mean it, a real shame that it has come to this. But, here we are and what we need to do is decide what we are going to do next about the situation. What’s next? Who is next?

The “Big Three” automobile manuafacturers have all been in Washington with their hands out begging for a bailout, but not one of the companies have a plan to make any changes with their companies to get back on the right track or to get financially stable. It is not that anyone wants the automobile industry to crumble in America, nor do we want to have any ancillary businesses and suppliers to go bankrupt, but at some point, until the automobile industry get’s it, there will be a continual spiral downward. But, if a bailout of any kind is to be given there must be changes. Big changes with oversight on every dollar spent so that the taxpayers do not take another bath without any benefit like we have been doing. crossfire_chrysler_automobile

Spend some time contacting your elected official to add some voice to this situation. Yes, many companies are in trouble, but if you want a handout there has to be some oversight and not just a free ride for failing miserably in their responsibility of fiscal financial obligations.

Speak out! Please!

Is it just me, or does it seem that fairness and equality are two terms that are totally foreign when it comes to the American workforce?


CEOs of some of the biggest companies in America are getting paid very well to:

1. Run their companies into the ground while

2. Laying off, downsizing or shutting their doors.


This has become very apparent over the last few weeks while the entire country has struggled with a massive financial sector bailout. We have yet to see how the $700B “fix” will be implemented and whether some financial institutions will continue to pay exorbitant salaries and offer golden parachutes for their CEOs at the taxpayer’s expense. AIG certainly seems to think spa treatments and golf outings are an acceptable way to use taxpayer dollars. CEO


In 1980, the average CEO of a major corporation made 42 times the average hourly worker’s pay. By 2000, the average CEO salary reached an incredible 531 times that of an average hourly worker.


Is tying executive compensation to the financial success of the company realistic? Does anyone honestly believe that all or most of the appreciation in the value of a company is directly related to the CEO’s talent?


24/7 Wall St has done an analysis of companies whose CEO’s need to see the writing on the filing and get ready to do some job hunting. Regardless of this type of projection of imminent demise, these CEO’s will probably enjoy a separation package that will soften any smack from hitting the pavement.


One such CEO was Michael Ovitz who enjoyed a $140 million paycheck for 14 months of work at Walt Disney. Shareholders sued but a Delaware judge ruled that the board did nothing wrong in awarding that huge severance package.


But Disney continues to be a solid company. Some boards award large packages to CEOs even as the executives trash their shareholders’ investments. Take, for example, Gary Smith of Ciena whose shareholders lost 93% during a four-year period, 2001-2005. His compensation during that time? $41.2 million.


Anderson Cooper has begun reporting on a new list, “10 Most Wanted: Culprits of the Crash,” featuring some of the most outrageous and egregious acts of greed on Wall Street, naming names of CEOs who have taken advantage of their companies, the bailout,  taxpayers and their own employees.


These outrageous compensation packages do not seem to have anything to do with the level of responsibility, or with how well a company is run. Wad of money


I know investors can vote with their feet – leave the dog that won’t hunt. And some activist shareholders fight overly generous pay. But another approach is to look for companies that have great performance and reasonably paid leaders. That is a sign that boards and top managers feel a responsibility toward shareholders, says Michael Brush, in an article on MSN Money. Brush includes a list of some of those companies as well.


But wouldn’t it just be easier if boards and search committees would hire people based on previous performance and – even more important – compensate more in line with what the company, and shareholders, can afford to pay?


Have you ever lost out because your company’s stock dropped, while the CEO was landing softly on a pile of cash? What are your thoughts?





Click here: CEOs Are Overpaid


Click here: The 5 most outrageously overpaid CEOs – MSN Money