I'm not sure if this is even legal but I guess they could change the executive pay contracts or something as board members. There is no way they could go after the bonuses that have already been paid without risking a lawsuit.
"It's hard to understand how derivative traders at AIG warranted any bonuses, much less $165 million in extra pay," Obama said at the outset of an appearance to announce help for small businesses hurt by the deep recession.
"How do they justify this outrage to the taxpayers who are keeping the company afloat," the president said.
I think they warranted the bonuses because if you don't pay them then Credit Suisse or a Hedge Fund or someone would poach them away. I hope Obama understands that these are some of the people that are keeping the company afloat. If they jump ship then who will be left to run the company? I'm pretty sure government officials can't do a better job a derivatives trading then the people that currently have these jobs.
The morale at AIG must be in the crapper because you have the President trying to steal your contractually obligated bonus and Barney Frank calling you incompetent and wanting you fired.
Rep. Barney Frank, chairman of the House Financial Services Committee, earlier Monday charged that the move to pay bonuses amounted to "rewarding incompetence."
"These people may have a right to their bonuses. They don't have a right to their jobs forever," said Frank, a Massachusetts Democrat.
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