I think more politicians need to spend time in the business sector managing to the bottom line.
AIG Should pay bonuses to its employees, WellsFargo should have had its Vegas party.
In order to get out of this mess it is going to take the best and brightest of the business community. To attract talent in the real world requires incentives. Imagine if all of the AIG top executives just left to pursue other opportunities and believe me talented people who put up results always have other oppertunities? Where would that company be?
I hate hearing the news reports of people saying it is frivolous and wasteful spending. It is the cost of business and to remove the incentive for the best people to fight on and clear up this problem is to leave the fate of the country to the hands of the mediocre.
Is that what we really want? Do we think that is the key to economic stimulus in this country?
I would rather pay the points up front on this to have the economy start to rebound then take the points on the back end which is exactly what is going to happen.
By cutting a hundred million in incentives up front you could be added trillions of dollars in loses on the back end as the recession drags on.
Pay them and stop bitching or maybe we should start looking at your compensation packages...
8 comments:
The only issue I had with the bonuses was that IF the gov. didn't bail out AIG, they would have gone BK, maybe out of business and the bonuses woudl not have been paid, unless I am missing something.
The other thing is didn't AIG payout bonuses to execs who arent even with the company anymore?
I agree that politicians questioning the AIG bonuses is a bit a double speak coming from the oh-so-hard working menbers of congress. However, rewarding AIG execs for running a company into the ground is simply wrong. In any other business, would employees be rewarded from bankrupting the company they ran and then given a second chance? Not too likely.
My viewpoint on this issue is colored by the fact that I sit at a desk in one of the orgs that received TARP funds. I've worked here for over a decade. While we all knew that there were some bad decisions made by execs along the way, I can not trace a straight line between my job and subsequent performance in that job led to the need for a bailout. Not even a sevnpointed star can get me there.
It's easy for me to admit that I am quite biased about this topic. But I agree with Brian, pay now or pay later. There's a lot of shoveling to do to fill the hole back in. You've got to motivate rather than punish the people that are doing the work. Coming from a person on the inside, I think congressional leaders should walk a mile in our shoes. Exec's get paid enough to bear the burden when things go bad, and they shouldn't get extra big bonuses. But let's be careful when we are talking about the people who are working every weekend, trying to get the ship back up right, and moving back into the channel. They are the ones that need the carrot, the motivation, or else they will simply give up...
Agree with you and rocket. I am all for bonuses and honoring contracts, but in cases where the govt comes in there should be a limit. That said, now that we're trying to dig out, I fully support big $$$ to pay the execs.
SO well said....The media has really created a huge boogeyman out of this issue to the point that if you even look at it differently and say Hey, maybe these are needed bonuses (in General) because it keeps talent and attracts talent etc. etc. -- the backlash from all the people that have been brainwashed by the media is just incredible
Did you see Jake DeSantis' resignation from AIG today? http://www.nytimes.com/2009/03/25/opinion/25desantis.html?_r=1&em
Brian --- this thing is just firing me up so I wrote my own post on it and hooked up a link to yours within it....
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