More good times at AIG, the failed insurance company that has (so far) received $152 billion in Federal bailout money.
After receiving endless grief about spending millions on lavish corporate retreats, executives have decided to take the more direct route and pay out an extra $503 million in corporate compensation to top executives.
AIG’s plans to crack open its deferred compensation bank for payments early next year is conveyed in a two-sentence paragraph buried inside a quarterly financial report filed with the Securities and Exchange Commission on Monday. But some compensation experts and AIG stakeholders yesterday said they considered the exodus of $503 million in AIG money dubious at a time when the company is drenched in red ink. The company reported losses this week that brought total losses to $37.63 billion for the first nine months of the year.
In their defense, AIG officials said that the half-billion dollar payout was necessary to keep its top talent (you know, the people who’ve been doing such a great job with the company) from leaving. They also stress that the payouts won’t come from the taxpayer-funded bailout money. It will come from their secret stash of money hidden deep in a fortified bunker.