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Originally Posted by UGAalum94
I apologize for not knowing how the bonus structure worked.
It still doesn't seem unreasonable that someone with knowledge of how things worked in the field couldn't have attached stipulations to their receiving the money.
Maybe the companies could have renegotiated contracts with their employees. Surely the employees couldn't have expected the contracts to be honored in bankruptcy, and we're we lead to believe that was what was looming for them if they didn't get the money, right?
Maybe you are right and the employees could have sued for breach of contract, but it seems kind of unlikely under the circumstances.
ETA: who expects to keep drawing the same salary when the company is on the verge of going under?
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The problem isn't with the COMPANY installing stipulations. The problem is with the GOVERNMENT implementing them. If they were to say, "We will bail you out, but none of this money may be used for paying bonuses or outrageous expenditures," then they would be limited in where the money could be spent.
You said, "Sure the employees couldn't have expected the contracts to be honored in bankruptcy..." But AIG never filed for bankruptcy. And you can't preemptively dismiss someone's contract because you MIGHT file for bankruptcy.