AIG: I Quit

Discussion in 'Economy' started by Indiana Oracle, Mar 25, 2009.

  1. Indiana Oracle
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    Indiana Oracle The Truth is Hard to Find

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    The following excerpts are from a letter sent on Tuesday by Jake DeSantis, an executive vice president of the American International Group’s financial products unit, to Edward M. Liddy, the chief executive of A.I.G. It appears in today's NY Times.

    It is with deep regret that I submit my notice of resignation from A.I.G. Financial Products. After 12 months of hard work dismantling the company — during which A.I.G. reassured us many times we would be rewarded in March 2009 — we in the financial products unit have been betrayed by A.I.G. and are being unfairly persecuted by elected officials. In response to this, I will now leave the company and donate my entire post-tax retention payment to those suffering from the global economic downturn. My intent is to keep none of the money myself.

    I take this action after 11 years of dedicated, honorable service to A.I.G. I can no longer effectively perform my duties in this dysfunctional environment, nor am I being paid to do so. Like you, I was asked to work for an annual salary of $1, and I agreed out of a sense of duty to the company and to the public officials who have come to its aid. Having now been let down by both, I can no longer justify spending 10, 12, 14 hours a day away from my family for the benefit of those who have let me down.

    As most of us have done nothing wrong, guilt is not a motivation to surrender our earnings. We have worked 12 long months under these contracts and now deserve to be paid as promised. None of us should be cheated of our payments any more than a plumber should be cheated after he has fixed the pipes but a careless electrician causes a fire that burns down the house.

    Many of the employees have, in the past six months, turned down job offers from more stable employers, based on A.I.G.’s assurances that the contracts would be honored. They are now angry about having been misled by A.I.G.’s promises and are not inclined to return the money as a favor to you.
     
  2. Ravi
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    Ravi Diamond Member

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    That's a shame. I'm not sure exactly what is going on here...no one's bonus was taken away from them, but I do believe some of them voluntarily gave it back.

    WTF is up with hiring someone for $1 a year and expecting them to not have an ulterior motive for taking the job? I'm talking about the CEO...but it sounds like this guy was also hired for $1 a year.
     
  3. Indiana Oracle
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    Indiana Oracle The Truth is Hard to Find

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    There were several as I understand it. The thing about the bonuses flap, besides providing a cover for those culpable in the Congress, is we hear mostly about the large ones given to large revenue producers. A whole bunch of lower-level people were also effected.
     
  4. Zoom-boing
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    Zoom-boing Gold Member

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    Some of them voluntarily gave the money back because they believed that they would be taxed 90% on it.

    They should have honored those contracts. The people receiving these bonuses weren't the ones who caused the problems; they were brought in to try and fix things. The real problem isn't the contracts, it's the fact that AIG shouldn't have been bailed out to begin with.
     
  5. Article 15
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    Article 15 Dr. House slayer

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    The diva ...erm, I mean letter writer, had worked at AIG for 11 years.
     
  6. GHook93
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    GHook93 Aristotle

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    Read the whole thing the man has a great point! Although AIG is setting record loses, they have to still be selling something or they wouldn't have a gross! The primary reason AIG is getting their butts handed to them is because they invested heavily in mortgage insurance and in CDOs. Yet AIG has many many other divisions and some of them are profitable, yet as a whole the company is in the pooper because of other parts of the organizations. It is still hard for me to accept the $165 mil bonus payout, but I definitely soften my stance after reading the letter.
     
  7. GHook93
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    GHook93 Aristotle

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    Yes, but he did not work in the CDO and mortgage insurance department. Are you going to blame the management in the life or auto insurance department who probably over-achieved and exceeded revenue, profit and sales goals because of the CDO/mortgage insurance department when they had no say, no supervision, no authority and were probably just as in the dark on what was going on over on that side as you, me and the general public? It was one segment a of a multi, multi multi-facets company that brought AIG to its knees!
     
  8. Article 15
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    Article 15 Dr. House slayer

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    He openly admits that he reaped the false benefits of the company for years. Now that the shit hit the fan and the chickens are coming to roost for the entire company he's writing a self exonerating letter of resignation. I get that he's pissed at Liddy and Congress, and rightfully so. I commend him for giving back the money but my heart certainly isn't going to bleed for him.
     
  9. Ravi
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    Ravi Diamond Member

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    According to the AP he got a bonus of $742,000 after taxes.

    How is he going to give his bonus to charity if it was taken away from him?

    Methinks he is full of shit.
     
  10. GHook93
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    GHook93 Aristotle

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    Where did he say that?
     

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