Corporate Bonuses Suck

AIG, a financial company that has been loaned billions of dollars by the United States government, says that they cannot stop millions in bonuses. Their lawyers said they would be open to law suits if they canceled the bonuses, which average over $100,000 per executive.

What I’d like to know is this. What are the bonuses based on? Obviously not profits, as AIG had a $61,000,000,000 loss in the 4th quarter of 2008. Perhaps they get bonuses for an attendance plan. Or maybe for staying with AIG for 3 years.

Get Us a Break !!!!

If you have been reading my blog for some time, you know that I have written about bonuses before. It is sickening. An executive gets a bonus when things go well, because it is obviously their decisions that made such great profits. Then they get a bonus when things go badly, because it was external forces that made them bad. Is it remotely possible that things went well due to external forces, and had nothing to do with the executive?

A co-worker suggested that the bonuses were for such a good job that the executives did on convincing the government to loan all that money!

A newer article on the Globe and Mail’s site suggests that perhaps there were inflated results just before the crash, and these led to hefty bonuses.

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