In case you've been hiding under a rock lately, American International Group or AIG, has fallen on some hard times. Last September the government acquired a nearly 80% stake in the company with an $85 Billion (Yes, that's a B as in billion) bailout. How does this financial giant spend its money? By paying out $165 Million in bonuses.
The official story is that the bonuses were promised out prior to the bailout and that AIG is contractually obligated to cover the bonuses.
Here's the problem I have with that. What company in their right mind offers employees a bonus for nearly tanking the company? No wonder they needed to be bailed out. I understand that if the employees met their personal goals that they should be given their bonuses accordingly. However, why did the management set the goals so low that bonuses could be paid out and the company could still go under? If you have any business dealings with AIG, I implore you to switch over to a new company. There's one certain way to make the bleeding stop, and that's to let the company die.
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