In Nov. 2008, AIG’s Liddy claimed top execs would forego pay raises and ‘2009 bonuses will be restricted.’
In Nov. 2008, AIG’s Liddy claimed top execs would forego pay raises and ‘2009 bonuses will be restricted.’
In November 2008, AIG succumbed to public pressure and announced that it would limit executive compensation. CEO Edward Liddy announced he would take a $1 salary, while his top 50 executive would “forgo pay raises through 2009.” In a letter to New York Attorney General Andrew Cuomo, Liddy made the following pledge:
AIG is mindful that it must act prudently and, as such, must impose curbs on executive compensation. … To meet these objectives, AIG’s top seven executives (Leadership Group) will receive no annual bonuses for 2008. In addition, the top roughly 60 executives (Senior Partners) including the seven most senior AIG executives, will forego any salary increase through 2009 and their 2008 and 2009 bonuses will be restricted. [...]
Finally, AIG is developing a funding structure to ensure that no taxpayer dollars are used for annual bonus or future cash performance awards for the top 60 members of management.
Read the full letter here.
Among those who received 2009 bonuses were James Haas (an executive VP), Douglas Poling (a general counsel, executive VP, and chief administrative officer), and Jonathan Liebergall (a director and head of municipal finance). It’s unclear whether they ranked among the top 60 executives at the company.
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All these executives who took these bonuses should be exposed and shamed into returning the money.
March 18th, 2009 at 1:07 pmThey are “restricted”…. Restricted to the people who got us in this mess and/or left the company.
March 18th, 2009 at 1:08 pm…the seven most senior AIG executives, will forego any salary increase through 2009 and their 2008 and 2009 bonuses will be restricted.
THE REAL LIDDY: Until we got the free money!!! Par-tay!
March 18th, 2009 at 1:21 pmLiddy and the AIG people are completely reprehensible. Maybe this pathology should be listed in an index of mental illness as “Preoccupation with filthy lucre that drives out all ethical considerations.”
March 18th, 2009 at 1:21 pmIf the average worker screws up, they most likely lose their job. If upper management screws, again the average worker most likely loses their job and a large segment of middle and lower class folks suffer but upper management is rewarded. The excuse is bonuses are needed for upper management to keep talent. And what talent would that be? These people should be out the door. And of course they should not get unemployment because that is a ‘liberal’ thing. /partial snark
March 18th, 2009 at 1:23 pm.
Senate quietly stripped measure restricting bonuses from bailout legislation
http://rawstory.com/news/2008/Senate_quietly_stripped_measure_restricting_bonuses_0318.html
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March 18th, 2009 at 1:25 pm.
The Real AIG Scandal
It’s not the bonuses. It’s that AIG’s counterparties are getting paid back in full.
By Eliot Spitzer
http://www.slate.com/id/2213942/
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March 18th, 2009 at 1:26 pmIt looks like someone has no clue about the difference of VOLUNTARY political contributions and bailout money. Someone’s economics and social studies instructors should be embarrassed.
March 18th, 2009 at 1:27 pmKlatu Says:
March 18th, 2009 at 1:25 pm
A fly is buzzing in here….it needs directions to the nearest pile of shit.
Here ya go buzzy fly.
March 18th, 2009 at 1:28 pmRobbers!
March 18th, 2009 at 1:30 pmKlatu Says:
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How about we clawback those political contributions to Obama, Dodd and Biden from AIG too? That money was at least reimbursed by bailout money, where is the outrage?
Here you go again with the idiotic comments. What are you talking about? It’s not like Obama or Biden stole the contributions or conspired to obtain the contributions illegally. There’s just no comparison and you need to just STFU!
March 18th, 2009 at 1:30 pmKlatroll babbles but, but, but look over there or over there or anywhere but at the topic. Right out of how to be an ignorant troll handbook page two
March 18th, 2009 at 1:31 pm.
You know, when a bank robber gets his picture posted on the evening news, it never shames him into returning the cash he stole…
… However criminal prosecutions prevent him from doing it again.
It’s just a thought.
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March 18th, 2009 at 1:32 pmLies do go unpunished, they are instead rewarded.
March 18th, 2009 at 1:32 pmIn retrospect, the whole Republican Revolution was just a bunch of guys giving themselves bonuses for being rich.
March 18th, 2009 at 1:34 pm.
#6 Klatu Says:
Seems like your bucket head is pretty outraged to me.
Why you ask? Need a mirror?
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March 18th, 2009 at 1:34 pmKlatu Says:
——————————————————————————–
How about we clawback those political contributions to Obama, Dodd and Biden from AIG too? That money was at least reimbursed by bailout money, where is the outrage?
Why did’nt you include:
McCain, John (R-AZ) Senate $41,200
Romney, Mitt (R) Pres $19,950
Sununu, John E (R-NH) Senate $15,950
Gee..you would’nt be bias would you Klatu?..I guess it was an oversite..right?
March 18th, 2009 at 1:37 pmSuper article by Glenn Greenwald over at Salon.com, super but so disappointing to one who truly believed we were electing an administration of change. I realized no one can know exactly what all their people, Summers and Geithner are doing but when it is exposed the boss must cut out the gangrene.
March 18th, 2009 at 1:46 pmKlatu – Bush got well over $200,000 from AIG during his elections, so there is enough crap for everyone. Until the lobbyists are thrown out of Washington, just like a horrible disease money will continue to write our laws.
March 18th, 2009 at 1:48 pmMax 1 – you need to read the Greenwald article…Dodd was fighting for restrictions…Summers and Geitner fought him.
March 18th, 2009 at 1:49 pmThe Real AIG Scandal
It’s not the bonuses. It’s that AIG’s counterparties are getting paid back in full.
Thats right. Good on Spitzer.
March 18th, 2009 at 1:51 pm…in the meantime, AIG has made a set of retention payments to employees…
Well, ok then, that’s fine. I was worried that the employees that caused this frigging mess were going to get bonuses but since they were just retention payments I feel a lot better.
March 18th, 2009 at 1:51 pmWhy do we need to retain people that helped drive AIG over the edge and into the abyss?
Cause they lit the smart fuse and tied themselves to the genius hamster wheel?
March 18th, 2009 at 1:56 pmE. Spitzer was fighting the lack of regulations on the banking industry but suddenly due to wire taps was discovered to be paying for a hooker. So, seems to me the hookergate was used to shut him up to fight for regulation.
Now lets see who was against regulation that would be Phil Gramm and John McCain along with the whole bush cartel.
I hope this too will pass, the bush cartel did so much more harm but the public has a short memory.
March 18th, 2009 at 1:58 pmtexaslady,
March 18th, 2009 at 1:58 pmI knew Tim Geithner was incompetent when he couldn’t pay his taxes…
… That or dishonest.
Liddy: “In all, total 2008 compensation for the top 47 executives is 56 percent lower than their total 2007 compensation.”
Maybe that’s because AIG lost even more money in 2008 than 2007? So it was harder to justify bonuses? In which case, why ANY bonuses AT ALL when the company collapsed?
Here are the results of 10 seconds of Googling “AIG profits” 2007/8.
From November 2007):
http://www.usatoday.com/money/companies/earnings/2007-11-07-aig_N.htm
NEW YORK (AP) — American International Group (AIG), the world’s largest insurer, said Wednesday its third-quarter profit dropped 27%, hurt by tight credit and the ailing U.S. housing market.
Shares fell $1.40, or 2.4%, to $56.50 in after-hours trading, when the report was released. They had plunged almost 7% to close at $57.90 in regular trading Wednesday.
AIG’s $872.3 billion-investment portfolio lost $864 million, its credit-swap portfolio lost $352 million and its mortgage-insurance business lost $215 million.
Back in August, AIG called exposure to subprime debt “minimal,” and said Wednesday that despite some losses due to mortgage-backed bonds, its exposure to the debt remains “high quality,” with “substantial protection.”
AIG’s investment portfolio does include some collateralized debt obligations, instruments that bundle up different types of debt. But the exposure is smaller than that of banks such as Citigroup and Merrill Lynch, which have written down big losses on their CDO investments.
From February 2008):
http://www.tmcnet.com/usubmit/2008/02/29/3300793.htm
“We have a strong capital base, and we are not seeking new capital,” he said, adding that while AIG faces challenges it “can and will manage through“.
Sullivan said the unrealized valuation declines in the credit swap portfolio will not translate into significant realized losses over time, and that any credit losses that do occur in the future will not significantly affect AIG’s overall financial condition
AIG reported net income of $6.2 billion, down 55.9% from net income of $14.05 billion in 2006. Credit default swap charges for the year totaled $7.46 billion after taxes.
The $5.29 billion loss for the quarter compares with net income of $3.44 billion in the same period a year earlier.
(In other words losses nearly doubled in 1 year from 07 to 08.)
For the year, AIG reported net income of $6.2 billion, down 55.9% from net income of $14.05 billion in 2006. Credit default swap charges for the year totaled $7.46 billion after taxes.
(So from ‘06 to February ‘08, AIG’s income, dropped 60%! and CDS ‘charges’ were over $7 billion! The TREND is effing obvious from FEB ‘08 back through ‘06, and accelerating!).
March 18th, 2009 at 2:02 pmBUT AIG STILL PAID BONUSES!
Well Max you are smarter than me, I was thrilled that Obama seemed to be appointing highly intelligent, competent people. And truly taxes at a certain level there are often overlooked items.
Now how in the hell the IRA overlooked 220 million that Texas Sanford hasn’t paid is really interesting.
Listening to Mr Liddy this a.m. I am impressed at what he is trying to accomplish and I think he may be able to turn this around.
March 18th, 2009 at 2:03 pmFrank wants a list of recipients of the bonuses. Liddy states will furnish list ONLY if it is confidential, fears for the lives of the recipients. Frank says no, he will supeona.
Good for Frank. These greedy bastards need exposure, they created a huge mess without regard to outcome. I would not want physical confrontation with these people BUT let their neighbors and friends know just what they have done.
March 18th, 2009 at 2:03 pmI am really beginning to think that “retention bonus” is just the new phrase for “hush money“.
March 18th, 2009 at 2:04 pmI dunno texaslady,
Who stands to win this lawsuit?
GREENBERG SAYS AIG RIPPED HIM OFF WITH HYPED SHARES
http://www.nypost.com/seven/03032009/business/greenberg_says_aig_ripped_him_off_with_h_157826.htm
However, it’s us that Greenberg is essentially suing, yet it must be done to put these criminals in their rightful horizontal pinstripes, NO?
.
March 18th, 2009 at 2:14 pm5th Estate,
That is exactly what I was referring too in yesterdays thread. These payment contracts were not faithfully executed. The meme about “nobody could see this coming” is BS AIG execs and boardmembers KNEW it, they lied about it, and made these contracts with employees to insure nobody blabbed.
Phuckem
March 18th, 2009 at 2:21 pmWhile we are all angry with AIG how about the ones that were first up to the taxpayer trough. Like the Carlyle Group for 150 Billion back in March 2008, Bears and Stern, Blackstone, and the list goes on. I wonder what bonus’s those employees are getting. George H. Bush is on retainer to Carlyle Group, they make their money through war, like KBR and Halliburton.
Haven’t seen a return of bailout from that bunch.
March 18th, 2009 at 2:22 pmRandom – wouldn’t you wonder that these compensations weren’t known to Hank Paulson last fall ? He started working on it in August of 2008.
March 18th, 2009 at 2:23 pmtesaslady,
March 18th, 2009 at 2:24 pmYou just gave us our homework!
Thanks Max I didn’t know that Greenberg is crying “unfair”.
Does anyone else think this AIG fantasy reminds them of the Enron debacle betting on imaginary futures. Still no one watching the hen house. It came out this a.m. that only 54 regulators to watch over the AIG and like companies.
March 18th, 2009 at 2:28 pmtexaslady,
Whoever says deregulation leads to self regulation is selling umbrellas while p!ssing on your leg. Sorry, I don’t mean to be crude, but really, am I as crude as the CEO’s?
I suppose we’ll see Madoff’s Obit in 30-90 days…
March 18th, 2009 at 2:33 pm… Cause of death: Heart failure.
Max-1 Says:
Sorry, I don’t mean to be crude, but really, am I as crude as the CEO’s?
March 18th, 2009 at 2:33 pm
________
Hell no. You’re nowhere near as crude as them. Check out this ransom note from AIG executives to Congress.
It says, essentially, that if we ever want to see our global economy alive again, we’ll keep putting billions of dollars in bags and handing them over real quiet-like.
March 18th, 2009 at 2:43 pmPeople keep saying look forward well to avoid continuing huge mistakes, one must look at what happened in the past.
March 18th, 2009 at 2:45 pmDeregulation and privatizing of major parts of our world, from banking, FDA, EPA, Walter Reed has brought America to our knees. Could we just once learn from letting the convicts run our lives.
The only thing that would be worse is if McCain and Palin were running the ship, talk about sleeping with the enemies and dumb and dumber !
March 18th, 2009 at 2:45 pm“To prevent undue risk exposure in the meantime, AIG has made a set of retention payments to employees based on a compensation system that prior management put in place.”
53 of those employees have already left the company! How long was that retention payment supposed to hold them?
March 18th, 2009 at 4:41 pmoverseas porn whack off loser…
March 18th, 2009 at 9:13 pmPut Liddy and his staff in prison for fraud!
March 18th, 2009 at 9:36 pm