Many are asking how it is possible that AIG will be giving out $165 million in bonuses to executives when they reported $61 billion in loss for 2008. AIG’s loss is considered the biggest corporate loss in American history and yet it is deemed necessary to give their executives bonuses? Where I come from, bonuses are premised on good income — an incentive to top management for a job well done. Considering that AIG has been given the biggest bail out money from American taxpayers, I find it indecent that a portion of the recent $170 billion bail out will be used to give bonuses. As a matter of fact, the earlier billions in bail out given to them did not produce results. What did they do with the previous bail out money? Oh I remember, they were supposed to send their executives out on a vacation as incentives for exemplary performance. Of course, it had to be rescinded because the public got word of it.
I can understand the outrage of the American people. Millions have lost their jobs, not because they did not perform well, but because of this economic catastrophe perpetrated by the financial sector. Economic analysts have been warning them for years that this day would come. Maybe they don’t care, they are at the top of the food chain. If all hell breaks loose, they will not lose their jobs — they will even get their bonuses. It’s the ordinary tom, dick, and jane who will be affected, not them.
For whatever its worth, it is good that this was revealed to the public and not hushed up like most inappropriate activities. While AIG attempts to rebuild its financial status, this type of activities will further ruin people’s trust and confidence in the company. Raising themselves from the ashes will now prove to be a more daunting task.