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AIG “employee retention” pay reaches $1 billion
January 29th, 2009, 3:00 am · 16 Comments · posted by Teri Sforza, Register staff writer
American International Group offered $450 million “retention pay” to employees who lost billions on credit-default swaps.
That averages out to about $1 million-and-change per worker, for the 400 or so workers in the financial products unit.
Those are the very folks responsible for some $34 billion in write-downs since 2007, as market value of the swaps plunged amid the sub-prime mortgage market collapsed, Bloomberg reports.
That brings the grand total of AIG’s “employee retention payments” to more than $1 billion. The money is meant to keep workers from bailing - as if there were any place they could go.
AIG, of course, is the insurance giant alive thanks to a $150 billion lifeline from the federal government. Taxpayers now own 80 percent of the company.
LOCK THE SCOUNDRELS UP!
In other AIG news this week, a former vice president was sentenced to four years in prison for defrauding shareholders - a relief for him, as he could have gotten a life term.
Christian Milton (left), 61, was convicted last year (along with four former execs of General Reinsurance Corp.) of using a sham transaction to help AIG improve its balance sheet. The fraud cost AIG shareholders as much as $597 million, Bloomberg reports.
U.S. District Judge Christopher Droney also imposed a $200,000 fine and two years of supervised release after Milton’s term ends.
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Since we are 80% shareholders I saw we all vote on this. My vote…fire them. AIG is rewarding people that mismanaged money and caused so much trouble for this company and our economy. Shouldn’t they also be suffering consequenses of their poor management? It doesn’t seem that they are.
Hey FEDS!!!
Who’s looking out for us you morons??
And another $850 BILLION on the block headed for Senate approval!
Stop the BLEEDING you fools. Even the Treasury can’t print money as fast as you are spending, oops wrong, giving away!
Good news is…
I just saved a bunch of money on my car insurance by switching to GEICO!
Seriously, I did just switch to GEICO after losing my job and looking for ways to reduce my family’s expenses….this after being with 21st Century insurance for the past 10 years (21st century was recently acquired by AIG…wonder where that money came from?).
So, I refuse to pad AIG’s pockets and switched.
(Wait…AIG doesn’t own GEICO too?)
GEICO is owned by Berkshire Hathaway… Warren Buffet’s company.
“Insurance giant AIG rewards workers who lost billions”
Well I’m a WORKER”
I have lost (not billions) but a sizable sum none the less
You think AIG could give me some??
They ‘SAY’ they have to keep these employees happy, so they don’t leave. However, that is an outright LIE! Where on EARTH are these buffoons going? McDonalds? Taco Bell?
If these employees are SO GOOD, why did they lose BILLIONS via investments that were on par with that of Vegas slots gambling?!?!?
Let’s face it, the ‘good ol boys’ club takes good care of heir own regardless of how bad they perform, and its high time to take down this elite club of buffoons once and for all!
wow who has a naked picture of uncle sam
You don’t pay retention bonus’ to people that won’t quit because they won’t be able to find other work! AIG management needs to be fired!
funny someone mentioned Geico… I think these employees should have had Geico to insure their pay!
So these AIG workers received bonuses paid for by taxpayers whose invested money was LOST by these AIG employees!
Those politicians who voted for this bill will receive a lot of “campaign donations” for this bonanza received by this bunch of crooks!
Thanks a lot you low life politicians. I don’t see a nickle of the “stimulus” coming my way, and even the banks are just giving .25% for my savings account. Who are the idiots who vote for these crooked politicians anyway? Who votes for Nancy Pelosi? Don’t tell me, AIG employees?
Kudos to all of you that still think democracy is the way to go. Democracy, much like any government set up, it is only as good as its leaders. Sorry to say the leaders of the US care about number one, them selves and not the public. We are only their loyal sheep that pay for insanity such as this. I am glad I don’t vote anymore. I am voting for the first guy that says the government is broken, we are starting from scratch, everyone in congress, GET OUT! Oh and for the crappy job you did, no severance package!!!
Notice the TV ads lately? Last year 21st Century converted to AIG. Now, 21st Century ads are back again with no mention of AIG.
First, we should blame the Feds and Regulator that let those idiots get away with it from the beginning then, all the upper management…Instead of jailing them, send them all to Iraq or Afgan to help those people rebuild their country…Why spent more tax dollar to try and house them here in the US?
This is too funny. Listen people, it’s obvious the government doesn’t care about the common citizen. The best way to fight this is to get an education and get a fancy job where you can work the system too. I’m not as fortunate as these dirtbags, but I could have…. I have a degree and had a good job working for Lehman. I could of made a lot more money if I had been a broker with them but instead I stayed with the accounting dept. I won’t make the same mistake again, If I get an opportunity to work for another big name company; I’m going to sales where I can screw everyone to fill my pockets because those are the people that survive.
I’m a Compensation professional, and I’d gladly donate my time on weekends to help the Fed audit some of these companies and their pay programs, practices, etc. It’s time we tax payers initiated some strict oversight!
what’s the deal with “retention” program? let them go! who is going to hire them when they are from AIG? They are lucky they still have jobs.