One of the main contributing factors of the spectacular implosion of AIG’s Financial Product unit was not knowing the real value of their assets. However, based on the behavior of AIGFP’s senior management, the value of at least one thing from the unit, a promise, is becoming crystal clear. Adding credibility to Bobby Benmosche’s contention that AIG is almost immune from Ken Feinberg’s reach, the Pay Czar issued a reminder to the four senior managers in the group who had promised to return their retention bonuses that he is still waiting.
But this shouldn’t come as any surprise. Given the amount of outrage at executive compensation this past year, it’s natural for people who received generous retention bonuses to think twice about giving them back. With the changing pay landscape, what are the chances they’d be able to recoup that money and who would go to bat for them? Even AIG must know when enough is enough when it comes to unjustified compensation.
In an August report to the pay master, AIG suggested increasing the Financial Products executives’ base salaries to as much as $950,000 and awarding bonuses of as much as $2.6 million.
AIG’s Top Swaps Managers Kept Bonuses, Feinberg Says [Bloomberg]
Good morning Greggy!
How are you going to work your favorite picture into the mix today?
Are you guys ready to let the dogs out?
SUNALB!
This is incomprehensible. Can someone please explain this to me? In English. Or German is fine.
“However, based on the behavior of AIGFP’s senior management, the value of at least one thing from the unit, a promise, is becoming crystal clear.”
Thanks for the help.
Albert Einstein
Why should they return them early – they’re taking the carry!
sorry, but I spent it on real estate!
They will have to pry the money from our cold dead hands.
AIGFP
One of the main contributing factors of the spectacular implosion of AIG’s Financial Product unit was not knowing the real value of their assets.
if you insert “their” before “not”, this almost works for a person that employs English as their first language. Otherwise, the reader is wondering what a “main [sic] contributing factor” was…since you only tell us one thing that it was not.
Clearly, AIG should have been left to die, to then be disected, and finally to have its remaining FP carcass rot and blow away while taking all the unpaid CDS bullshit with it.
Ahh! Lucidity can sometimes be found in the strangest places…even in the mind of TGFD.
The Guy from Delaware
Bobby can manage our tax dollars. He turned MetLife, a mutual insurance company, into a public company. The guy is a flake.