AIG Pulls Fast One -- "Cash Awards" Going To Managers

When you are a pro at a scam--the definition of "scam" also can be found under the term "insurance industry" -- you know how to try to pull a fast one. And AIG is trying to pull one -- under cover of the holidays. Check this out.

You may remember that AIG -- which is afloat only thanks to a bailout by you, the taxpayer, to the tune of $152 billion and counting--made a whole lot of public relations when its top seven executives agreed not to take bonuses this year.

Well, on the eve of Thanksgiving, obviously knowing the markets would be closed on the holiday and obviously knowing that just before the holiday few people would pay attention, AIG actually notified regulators that, well, yes, bonuses would be given out, as Bloomberg News and The Financial Times reports today:

American International Group Inc., the insurer that said yesterday it scrapped bonuses for top executives after a U.S. bailout, will still pay 130 managers "cash awards" to stay with the firm, including $3 million to retirement services chief Jay Wintrob.

Wintrob, 51, will get the "retention" payment in two installments, the first in April 2009 and the rest a year later, New York-based AIG said today in a regulatory filing. The firm previously disclosed the program in a Sept. 26 filing and said today that Wintrob and Chief Financial Officer David Herzog elected to get the payments four months later than planned.

"The expectation from the public and Congress was that they weren't getting bonuses, not that they'd be pushed off by several months," said David Schmidt, a consultant at executive pay firm James F. Reda & Associates. "That clearly violates the spirit of AIG saying they'll forgo their bonuses."[emphasis added]

From the FT:

However, the UBS news comes just a day after it emerged AIG, which has received more than $150bn in bail-out financing from the US government, would still pay 130 managers "cash awards" to stay with the firm. AIG disclosed the bonuses in a regulatory filing on the evening before Thanksgiving, a day when US markets are closed. The insurer had previously said its seven top executives would forgo their bonuses for 2008.

They just can't help themselves, can they? Call it "retention pay" or "cash bonuses" or some other euphemism -- but the fact is that your tax dollars are going to reward people who are lucky to even have jobs. There should have been a housecleaning that swept the entire top level of managers out on their asses for playing a role in the financial crisis that is hurting millions of people.

I have not seen this reported in other mainline traditional media. But, this is a scam.

Comments

[SteveDenver]

What is the connection Bush & Co. have to Wall Street that they don't have with the auto companies? This is Bush's final crooked move. It's still not too late to impeach to stop them from sealing records and handing themselves immunity. This is an outrage.

[evie]

Seems to me that America has loads of untested economic talent graduating from our schools burdened by huge student loans; they need jobs and our country needs their service. I'm pretty sure they won't require any million dollar bonuses. I don't give a rats a-- about keeping the exising 'talent' on Wall Street, AIG, or the automotive industry. Time for a change, right?

[concernvoter]

This is just like stealing from the poor.

[who38]

AIDG bought my auto insurer. When I was involved in an accident, they refused to help as the amount of damage was below my deductible. I tried to call Customer Care. No answer. The agent who responded to my accident report told me that she couldn't reach that department either. I can hardly wait to change carriers and I am filing a complaint with the State Insurance Board. This company is not a business.

[concernvoter]

I believe on January 21, 2009, Obama is going to pull a fast one on AIG, Wall Street and the Automakers.

[SWAMPCAT]

I hope you're right.

[PhilipTaylor]

I think this BAILOUT is a DEVIOUS PLAN by the BANKSTERS to consolidate and build MEGA BANKS and to TAKE AS MUCH of America's Tax Dollars and Foreign Funds prior to Bush leaving Office!
__________­__________­__________­__________­__________­__________­__________­________
We need a Simple FORMULA that calculates the Maximum Total Income an Executive can receive. It must be based on a three year and five year record of performance in building PROFITS, JOBS, and Economic Output!

So a manufacturing company producing REAL Economic Output, Employing thousands or even a million people, and generating profits will receive more Income than

A Banker producing no REAL OUTPUT, with a similar number of JOBS, and similar PROFIT!

We need REAL WEALTH BUILDING not "FAKE" Fees added to some "TRICK" Mortgages!

The Final Step in Calculating the Executives Maximum pay is it must be less than the Package the President of the USA receives of $400,000 + two homes (not including the security).

So no Executive should receive more than MAX of $2 Million per year!

I think we all can get along on $2 Million per year like Obama! Of course, the yacht might have to be smaller and the paintings might have to be $10,000 instead of $100 million, and the servants might have to be downsized, and maybe downsize the house to 12 bedrooms.

[vinainor]

Corporate crooks and thugs take our money with hardly any strings attached and then spit in our faces over and over again while they claim all the profits and make us responsible for all of their losses. How can we let this happen? What does it say about us?

[waynesmyer]

But! But! as any fool can tell, the 130 managers and 7 top executives have done such a wonderful job for AIG that we must give them gobs of money so thay won't leave! Right! Hey! makes sense to me! your beloved and truly "vice" Great War Profitnator, Dickie "F-U" Cheney

I approve this totally stupid statement! Gee Dubba "Baby" Bu$h, your beloved Great War Presinator

[youknowwhat]

While congress was beating the crap out of the auto ceo's, I guess AIG thought it was as good a time as any to steal some more money.

[Levittown]

WE MUST CONTINUE TO YELL LIKE HELL AND NOT TAKE IT ANYMORE. ANY HINT OF GOLDEN PARACHUTES AND BONUSES NOT DESERVED WE YELL SOME MORE. DON'T LET A DAY GO BY WITHOUT PUTTING THE SCAMMERS OUT IN THE OPEN. NO MORE GIVE AWAYS TO THE MONEY LENDERS AND BROKERS. TOP JOBS ARE HARD TO COME BY. MAKE THEM EARN EVERY PENNY.

[who38]

Can't say they are not opportunists.

[Novista]

AIG website contact page:

https://securecontent.aig.com/contact-aig_20_19050.html

[2008CaliforniaFan]

Thanks for the AIG website link. This link is the webpage where you ask for info about policies and fill out the questionaire. I gave them my opinion as well as sending an email to the Oversight Committee in Washington as well..

Rather than the AIG questionaire page....is there any way to find out an email address of an AIG CEO or Manager.

2nd question: Would Huffingon Post sponsor a link or post it here to sign a petition to send to the Oversight Committee. We need to send a message with a LOT of signatures.

[who38]

Contact FireDogLake. They may have a suggestion.

[BillMelater]

Let it be their severance pay and put the bums out.

http://billmel8er.wordpress.com

[Dem in TX]

Cash is king!

Take your money out of AIG, switch your insurance out of AIG...if they don't have your money in investments and insurance they will ultimately pay the price of poor performance.

Kill 'em with capitalism!

and yes I am pissed that they are getting bonuses with my money, but it stops today!

AIG gets none of my money. we have choices.

[Woodguy]

I'm beginning to think before we lend any of these companies money, they must first get rid of all their officers and board members. Then they start with new leaders who are told that if they pull anything like this, they will be frog marched to the closest maximum security prison and be assigned to cells with hardened criminals.

[2008CaliforniaFan]

A question to all the bloggers here.

Would it do any good to have someone start a petition that we could all sign and make sure it is delivered to someone on a Congressional Oversight Committee that we will not stand for this "White Collar Crime" that AIG is perpetrating on all of us and America. A quote from the movie 'Network' applies here...

"We are sick and tired and we are not going to take it anymore".

If Congress will do nothing...­. someone list the email address of one of these AIG Executives and we can email them directly..­.. and DAILY! Maybe the voice of America's email will overload their server and shut down their webpage.
Would we need to go directly to the AIG website?
They NEED to hear our outrage...­.. they still "Don't get it".
They feel they are 'entitled' to OUR money.

[Woodguy]

Here is the link to the Congressional Oversight Committee, if that helps anyone. I just sent a email, and maybe if enough of us send messages someone will notice. Don't know if it will ultimately help, but it's a start.

http://oversight.house.gov/contact/

[lafrance]

Congress failed to put in rules and cavaets in the legislation to monitor and make sure certain things were followed before they got any money.
This is the failure of our congress for not doing so before giving these crooks our money.
I can only hope once Obama's team gets in they will clean this mess up and bring a hammer down on them or kick them in the *** if they keep doing this stuff.

[ChristianEcon.com]

"This is the failure of our congress for not doing so before giving these crooks our money."

You're right, they should've known you can't deal in good faith with these kinds of people.

[who38]

Operative words: CONGRESS FAILED. I am as angry at them as I am at AIG. Best monitor all political donations made by AIG in the next ten years.

[SWAMPCAT]

If you're tired of the Republicra­t/Demopubl­ican machine treating you and others like cattle to be herded and milked, check out LP.org

If you're interested in keeping much more of the money you earn, instead of paying under duress for such things as the Big Bailout, check our FairTax.org

[ChristianEcon.com]

The Fair Tax is just another free-market welfare-fo­r-the-rich scheme. America needs to return to primacy of the middle class, if it's not too late.

[SWAMPCAT]

On the contrary; the Fair Tax would replace the income tax with a consumption tax. The government would still be funded, but individuals would have more control of their finances. Further, anyone who makes a purchase would be paying taxes, which means individuals who are in the country illegally or who are part of an underground black market economy (drug dealers) would still have to cough up their fair share; the IRS would soon become defunct.