After the bailout, AIG Execs Head to California Resort

[E B]

Rescued by Taxpayers, $440,000 for Retreat Including "Pedicures, Manicures"

 

[starsapphire]

"Their getting their pedicures and their manicures and the American people are paying for that," said Cong. Elijah Cummings (D-MD).

If you just GIVE someone something, they oftentimes take it for granted. These people are used to wasting large sums of money. This is just another example. They feel no guilt about it either. Oh, it was soooo exhausting going thru that Bailout! I must go and get a pedicure!!! I say, rip their frigging toenails out!!!!

 

[starsapphire]

"Mr. Sullivan and the other top executives should have had their bonuses slashed due to poor performance," said Waxman.

Sullivan said it was "substantially reduced" by the board in 2007 due to poor performance.

Sullivan was given a $15 million "golden parachute" payment after being replaced as CEO in June.

No one that I know gets financially rewarded for poor performance!!!!

 

[MoonWater]

ain''t that some ****

 

[mrssalvo]

Date: 10/7/2008 4:42:29 PM
Author: MoonWater
ain''t that some ****

ditto

 

[Allisonfaye]

As the wife of an insurance company exec (not the same company), I can tell you that recognition events for the sales people are very common and they are rewarded because they are the lifeblood of an insurance company. (Not sure if that''s in fact what this was, since the post was below the article). But these people work very hard for this event all year. As far as changing the bonus structure for the corp execs or cooking the books, this is of course, unethical. But that''s a different issue.

And as the wife of a corp exec, I want to assure you that not all companies do this stuff. They are not all corrupt.

 

[purrfectpear]

Not all of them do that, but plenty do.

Boeing''s union has been on strike for a month now. Boeing execs decided to hold negotiations in Florida

Oh yeah, that''s a big incentive to settle things. In the mean time corporate refuses to come to the table, and we lost somewhere between 1.3 and 2.3 billion dollars in revenue over the last month.

I see the impact it has on our supplier/vendors. I''m currently working on-site at one of the major partners. They have gone to a three day work week. Their employees are forced to use vacation/sick days, or lose salary because of Boeing''s strike

Smaller companies are closing shop and laying people off.

And Boeing wants to hang around at Disneyworld

I''m thankful I moved all my stock in February before this crapfest started.

 

[SarahLovesJS]

Wow, that''s pretty sickening. Thanks for posting this Ebree.

 

[miraclesrule]

It''s just the tip of the iceberg when it comes to frivolous spending. The fact that they are doing this during the economic crisis is unconscionable.

 

[Shoopy]

Date: 10/7/2008 6:16:41 PM
Author: Allisonfaye
As the wife of an insurance company exec (not the same company), I can tell you that recognition events for the sales people are very common and they are rewarded because they are the lifeblood of an insurance company. (Not sure if that''s in fact what this was, since the post was below the article). But these people work very hard for this event all year. As far as changing the bonus structure for the corp execs or cooking the books, this is of course, unethical. But that''s a different issue.

And as the wife of a corp exec, I want to assure you that not all companies do this stuff. They are not all corrupt.

This was not a retreat for the "sales people" it was a retreat for the executives. I''m pretty sure the "sales people" are not going to see any of these planned events this year.

Now, typically these retreats are approved ahead of time and already worked into the budget so the money for this particular trip most likely didn''t come from the government assistance. But if these execs were smart, they would not have taken the trip (or at least waited a few more months).

 

[Allisonfaye]

Date: 10/8/2008 11:47:09 AM
Author: fieryred33143

Date: 10/7/2008 6:16:41 PM
Author: Allisonfaye
As the wife of an insurance company exec (not the same company), I can tell you that recognition events for the sales people are very common and they are rewarded because they are the lifeblood of an insurance company. (Not sure if that''s in fact what this was, since the post was below the article). But these people work very hard for this event all year. As far as changing the bonus structure for the corp execs or cooking the books, this is of course, unethical. But that''s a different issue.

And as the wife of a corp exec, I want to assure you that not all companies do this stuff. They are not all corrupt.

This was not a retreat for the ''sales people'' it was a retreat for the executives. I''m pretty sure the ''sales people'' are not going to see any of these planned events this year.

Now, typically these retreats are approved ahead of time and already worked into the budget so the money for this particular trip most likely didn''t come from the government assistance. But if these execs were smart, they would not have taken the trip (or at least waited a few more months).

According to the passage below the article, it was for sales people and it is common for the CEO to go along to let the sales people know they are appreciated. This is like the equivalent of giving the secretaries their bonuses. I agree that the timing might not have been great.

 

[Allisonfaye]

http://cosmos.bcst.yahoo.com/up/player/popup/?rn=3906861&cl=10089022&ch=4226720&src=news

Here''s the link. SALESPEOPLE

 

[Allisonfaye]

I am sorry to see this has turned into a witchhunt.

Reuters
AIG says lavish event was mischaracterized
Wednesday October 8, 2:29 pm ET

NEW YORK (Reuters) - American International Group Inc (NYSE:AIG - News), a day after being criticized for a lavish event held just days after the insurer got an $85 billion government rescue loan, shot back on Wednesday saying the event was for independent life insurance agents, not its employees.



AIG drew fire at a congressional hearing on Tuesday for spending $200,000 on hotel rooms and $23,000 on spa services at an event lawmakers characterized as an executive retreat.

As lawmakers grilled former top executives, Rep. Elijah Cummings, a Maryland Democrat, said: "They were getting facials, manicures and massages, while the American people were footing the bill."

On Wednesday, AIG said the "business event," hosted by one of its subsidiaries, was for independent life insurance agents. It said the event was planned "months before" it received the loan last month, and no AIG executives from headquarters attended.

AIG''s effort to correct the record on the event came after White House spokeswoman Dana Perino had added on Wednesday to criticism of the event.

"I understand why the American people would be outraged," she said at a White House briefing.

President George W. Bush did not intend to benefit industry titans when he approved the bailout of AIG and a wider $700 billion Wall Street rescue package, she said.

"Rewarding failure is something we have a very hard time swallowing," Perino added.

AIG said current Chief Executive Edward Liddy had written a letter to Treasury Secretary Henry Paulson to clarify the circumstances of the business event.

The company said Liddy assured Paulson that AIG now faces very different challenges, saying: "(W)e owe our employees and the American public new standards and approaches," and that the company is "re-evaluating the costs of all aspects of our operations..."

AIG said 10 employees from its subsidiary, AIG American General, attended the 100-guest event.

(Reporting by Jonathan Spicer, with additional reporting by Andy Sullivan in Washington;