Where Is The Outrage

It has been announced this week that the Insurance company AIG (American International Group) is requesting permission to pay over 235 million dollars in retention bonuses to some of their employees. This amount is far in excess of the 165 million dollars AIG wanted to pay as bonuses in March of this year. Those bonuses caused enough of an outrage that the CEO of AIG, at that time, resigned under the controversy. The following is an article that appeared recently in USA Today, addressing this very subject; http://www.usatoday.com/money/companies/management/2009-07-12-aig-bonuses-pay-czar_N.htm
Pay czar Feinberg looks at over $200 million in AIG bonuses
By Pallavi Gogoi and Kathy Chu, USA TODAY
NEW YORK — In what could be his first test in office, pay czar Kenneth Feinberg will decide whether to give beleaguered global insurer American International Group approval to pay out $2.4 million this week, and another pending $235 million in retention bonuses in coming months, to its employees.
When AIG paid $165 million in retention bonuses in March, there was widespread public outrage because the government had bailed it out with more than $180 billion in taxpayers' money. CEO Edward Liddy appealed to employees to return at least half of those bonuses as he was given a dressing down by lawmakers at a congressional hearing. Liddy has since decided to step down.
This time, AIG is seeking administration approval before giving bonuses.
"After being under siege last time, AIG wants the government to give some sort of political protection before paying out its contractual deferred compensation," says Andrew Samwick, a professor at Dartmouth College.
AIG spokeswoman Christina Pretto wouldn't comment except to say: "We all have the same objective, which is to restore AIG, repay taxpayers and reduce risk."
The latest Treasury compensation rules for companies that have received government funds "prohibits" any bonuses or retention awards to "highly compensated employees" and "senior executive officers." However, it is Feinberg's job to review any bonus structures that were awarded before Feb. 17 and also "where appropriate, negotiate appropriate reimbursements to the federal government."
Feinberg didn't return calls seeking comment. But Treasury spokesman Andrew Williams said in a statement: "Companies will need to convince Mr. Feinberg that they have struck the right balance to discourage excessive risk-taking and reward performance for their top executives. … Mr. Feinberg has broad authority to make sure that compensation at those firms strikes an appropriate balance."
The Obama administration had to take some heat for allowing the bonus payments in March, especially since President Obama had chided Wall Street for excessive pay. Since then, the administration named Feinberg to oversee and review payments and compensation plans for the executives and the 100 most highly compensated employees at companies that received government aid.
This week's proposed payout is already drawing criticism. The Service Employees International Union demanded that AIG halt the bonus payments. "The greedy CEOs who tanked our economy don't need another million-dollar bonus," said Andy Stern, SEIU president.
For now, the call is Feinberg's, and compensation experts are watching closely. "Feinberg might have to absorb some of the flak this time," says Charles Elson, director of the Weinberg Center for Corporate Governance at the University of Delaware.

My question is where is the outrage over this latest development? Why do our legislators appear to be looking the other way over this latest event?
The following are excerpts taken from another USA Today article recently published;
http://www.usatoday.com/money/companies/management/2009-07-10-aig-asks-obama-for-bonus-approval_N.htm
While the company isn't required to get the government's blessing because the payments are actually for 2008 employment contracts, the Washington Post said executives are reluctant to move forward with installments coming due next week without official approval.
In September, the government provided AIG with an $85 billion rescue package amid the mushrooming credit crisis. In return, they took about an 80% stake in the New York-based insurance giant. Since then, the government has provided additional rounds of support. AIG's available loan package now totals $182.5 billion, though AIG has not tapped all of the funds.

As far as I am concerned, if they have not repaid the obscene amount of money they borrowed from my tax dollars then, they are completely obligated to not only ask to pay bonuses but, to explain in great detail how employees, who ran the company into the ground, even deserve bonuses.

Now, maybe since Kenneth Feinberg was hired to deal with such requests is the reason the situation appears to be running under the radar. With addressing Healthcare and a new Energy Bill, the Obama administration has enough on their plate right now. My hope is that this corporation is being held on a very tight leash and will not be allowed to flagrantly spend money, it really does not own, in the face of economic discord.

I will never deny anyone compensation to support their family especially, if it is well deserved. But to me, until all the TARP money is repaid, there is not a single person in AIG who deserves anything more than their base salary. Especially those who helped bury the company to begin with. To me, that is where the outrage is.

That’s How I See It.

Websites of reference;
http://www.insurancedaily.co.uk/2009/07/17/alico-to-split-from-aig/
http://www.aig.com/Home-Page_20_17084.html
http://en.wikipedia.org/wiki/American_International_Group
http://www.usatoday.com/money/companies/management/2009-07-10-aig-asks-obama-for-bonus-approval_N.htm
http://www.usatoday.com/money/companies/management/2009-07-12-aig-bonuses-pay-czar_N.htm
http://en.wikipedia.org/wiki/Kenneth_Feinberg