Recently, 73 AIG executives including 11 who no longer work there were paid $1million each in bonuses. This begs the question why give bonuses to people who run a company into the ground? Historically, bonuses were a reward for exemplary performance, going above and beyond the call of duty. When did it become de rigueur to reward mediocrity and outright incompetence? Running a company into the ground does not qualify as exemplary performance. AIG was in such dire straits, that they accepted T.A.R.P (Troubled Asset Relief Program) funds. Why was it necessary to reward the executives of such a poorly run company with taxpayer funded money?
Today, having heard the hue and cry from the huddled masses yearning to stay afloat financially, Congress is looking toward a tax to in an attempt to recoup the money. Treasury Secretary Geithner said he would withhold $165 million from the next $30 billion payment the firm is scheduled to receive. That's all well and good, but what about the 73 executive who've already received their bonuses? Will AIG do the right thing and ask that the bonuses be returned? Don't hold your breath.
AIG is said to be too big to fail, but one has to wonder what would happen if we let them fail?
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