Crappy CEO, Big Compensation

[awkward1]

This justs burns me up! The former CEO of AIG runs the company into the ground with risky sub-prime mortgage investments forcing the company to write off 20 billion in losses by June '08. He gets ousted, but with a $47 million severence package? I just don't understand this! I think that if any employees or investors lose their savings/jobs because of this then he should be prosecuted and held accountable. While I have posted this elsewhere I feel like it deserves a thread of it's own. Will the people who run the companies responsible for the near collapse of our financial markets be held accountable? grrrr.....

http://www.directorship.com/sullivan-to-receive--47m

American International Group will give outgoing CEO Martin J. Sullivan a severance packaged valued at $47 million. Sullivan’s resignation took effect July 1, according to a Reuters report.

Sullivan will receive severance of $15 million and a bonus of $4 million for the portion of the year he worked. He will also maintain outstanding equity and long-term cash awards valued at approximately $28 million, according to the regulatory filing.

Sullivan resigned after AIG wrote down $20 billion in losses on the market value of assets linked to subprime mortgages.

[AKA_Monet]

Whole bunch of gajillionaires tippy-toe out like that--like rats on a sinking ship...

Hayle, you can even twist arms of some of these fools after they have committed some junk be it stealing folks money to cheating on a longtime married wife with a mistress... It adds that money corrupts, a lot of money corrupts absolutely...

But, I guess, money isn't everything, but it keeps the kids in touch... LOL...

Also, the Enronites all died... Oh well... And Keating from S&L fame got outta jail and has a blog somewhere. And Michael Milliken--junk bond dealer--is doing some "internet security" business... LOL...

[PhiGam]

Its wrong but at this point its pretty standard to have a severance package like that.

[OneTimeSBX]

you know what though, it has been my experience (working for a large bank and a credit card company) that people do not do their research, and do not pay attention to how things are being handled. they chunk that money into a 401k or whatever, and just assume it will be there when they are done.

ceo's make too much damn money anyway. dont get me started. but yeah, its kinda jacked that when the company nosedives they get off with several million dollars, while Jane, the receptionist on the 3rd floor, gets nothing. it pays to do your own investing and homework!

[KSigkid]

Originally Posted by AKA_Monet

Also, the Enronites all died...

Not all of them, only Lay; Skilling is in jail for another 20 something years, I think.

[WarEagle07]

Originally Posted by OneTimeSBX

you know what though, it has been my experience (working for a large bank and a credit card company) that people do not do their research, and do not pay attention to how things are being handled. they chunk that money into a 401k or whatever, and just assume it will be there when they are done.

ceo's make too much damn money anyway. dont get me started. but yeah, its kinda jacked that when the company nosedives they get off with several million dollars, while Jane, the receptionist on the 3rd floor, gets nothing. it pays to do your own investing and homework!

It's hard not to throw money into a 401k when your employer matches your contributions. Having said that, I agree with you that it is our responsibility not to put all of our eggs in one basket.

Did anyone catch the Presidents speech on the crisis this afternoon. I watched it on ABC around 11:00 I think. He outlined how the feds need to reform the financial sector ASAP and also gave the reasoning for the AIG loan. In the commentary after the speech one of the anchors said that he had heard that when Bernanke met with Democrat and Republican congressmen he stated that time was of the essence because America was just days away from total collapse of the financial markets prior to the gov. loan. That is some scary language if true.

[texas*princess]

shizz like that burns me up too, but unfortunately that's how it goes.

[pinksirfidel]

Its funny how socialism is a "good thing" when its convenient!