Booze, Baseball, and another "B"

Sunday, March 15, 2009

Dammit, AIG....

I've been trying to just put my head in the sand over the whole AIG situation (them being $170B in the red), but their latest snafu with about $165M worth of bonus pay is just stupid.

In case you hadn't heard, they just lost $61.7B last quarter. Which is very stupid.

There are perfectly decent legal grounds for paying out the bonuses, which I understand. What I don't understand is how AIG didn't put something into those folks' contracts that said something to the effect of "if we lose more money in a quarter than any company ever has, you don't get bonuses." That seems pretty simple to me. On top of that, they should have tried to make some blanket amendment which says "look, man, you're lucky to have a job right now, you're not getting your bonus since you don't deserve it."

This is all on top of the fact that most people can't understand how a company pays bonuses to anybody if they're in the red. Much less hundreds of billions of dollars in the red.

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