Hello, I’m Charlotte Bellis, and you’re watching Newsy.com.
Many are debating whether AIG employees should be forced to return nearly 200-million dollars in bonuses.
The Associated Press brings us an example of lawmaker frustration:
“I think the time has come to exercise our ownership rights-- we own most of the company-- and then say as owner, ‘I’m not paying you the bonus, you didn’t perform.’” (Associated Press)
Let’s go to CNN, who brings us AIG’s defense:
“AIG says it could lose its top performers to higher paying jobs. The company could go under, and the 170 billion taxpayer dollars—all for nothing.” (CNN)
FOX News’ Greta Van Susteren attacks AIG’s defense, asking why the company would even want to keep those executives: “They may be very good men and women, but the fact is, this group of people did a lousy job. They’ve cost the American people a lot of money. So maybe losing them wouldn’t have been such a bad idea to begin with.” (FOX News)
NPR reports corporations often promise bonuses regardless of performance.
But a New York lawyer says AIG’s case is a little different:
“People enter into contracts to pay bonuses however the company does, and we often find that when companies hire new employees. But for a company to promise hundreds of employees that their compensation would be at least what it was in the past is unusual.” (NPR)
The Economist suggests the Obama administration has options to quell public outrage, but none of them are good:
- If he stops the bonuses, he faces “impossible legal knots.” - If he does nothing, “the danger is…seeming to have been taken for a ride”
CNN suggests a double standard, pointing out many of the politicians protesting the bonuses received campaign money from AIG in 2008.
“Democratic Senator Chris Dodd--who we were just talking about--got 103-thousand dollars for campaign ’08. Candidate Barack Obama, at number 2, got 101-thousand. Republican opponent John McCain took nearly 60-thousand. Then-Senator Hillary Clinton is 4th on that list, took nearly 36-thousand dollars.” (CNN)
AIG CEO Edward Liddy is spending Wednesday morning testifying in a Congressional hearing. Please stay with Newsy.com as we continue to follow this story.
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