MUST READ: AIG Resignation

Discussion in 'Off Topic' started by packermatt7, Mar 25, 2009.

  1. packermatt7

    packermatt7 5-Year Member

    May 8, 2008
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  2. bruno

    bruno 5-Year Member Retired Staff Member

    Feb 2, 2008
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    Touching. However, basically my sympathy level for guys who are complaining about lack of recognition and bonus payments when their company has lost $100 billion plus is pretty limited. As a company they are hemmoraging money- and I can guarantee that many - if not most bonus plans are directly tied to a Corporate ROI or operating profit component or multiplier regardless of an individual business units performance. So what do you figure the multiplier is on -$100 Billion ??

    Clearly the CEO had a gross failure of leadership in not telling these guys 3+ months ago that the survival of the company was in serious doubt and payouts of the kind that they had agreed to were not going to happen and were indefensible in light of the company's precarious postion. But surely - as the economy approaches 10% unemployment, Auto manufacturing is on pace to have a 10 million or less annual run rate; Steel production is down almost 50%, Cast metals/forges and foundries are down by >40%, the housing market is in a shambles and Stock values are at 1998 levels and AIG remains in business only because the public is the defacto owner of the company, and yet this guy feels like he and his peers were let down over the bonus deal and are now living in fear? What does he think that the average working person in Industry is feeling every day when yet another week of declining or depressed orders is reviewed and the HR headhunter comes down the hall giving them an hour to clear out and be escorted off the premises??? Sorry- can't muster that much sympathy. Good to see that he's donating his bonus though.

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