When the AIG execs went for a posh retreat costing US$440,000, then Democratic Presidential candidate Barack Obama said, "Fire those execs". Well, now they plan to pay US$450,000,000 to these non-performing execs who caused AIG to lose US$61,000,000,000 in the last quarter of 2008, and yet, the Obama Administration can only wring their hands and say the bonus payouts are contractual.They have been questioning why they should reward bad performers. When a company posted the biggest loss ever in the U.S. corporate history, and yet its execs are going to be rewarded with millions, something must be seriously wrong with their corporate employment contracts and their Board of Directors who seemingly don't mind dishing out such lucrative contracts without demanding sterling performances.
I would have thought the obvious solution to this whole sorry affair would be to close down the London-based division which almost bankrupt AIG, and fire all these execs for their lousy performance, instead of pouring good taxpayers' money after bad.
Obama promises Change You Can Believe In. Have any fundamental changes been made, really?
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