That’s right AIG insurance just paid out some major bonuses to their executives, and yet continues to struggle as an organization. So what are the bonuses for? Well according to the dictionary, a bonus is a merit awarded for an achievement. In banking, bonuses are usually awarded due to the financial contribution one makes vs their growth goals.
In other words, you only get a bonus when you meet your sales numbers and are profitable.
In the past few months AIG insurance has been known as one of the major financial organizations that borrowed money under the financial bailout program. AIG insurance borrowed money under this program to keep itself alive through 2009. The financial bailout was meant to help the struggling financial sector with temporary funds to keep themselves afloat. AIG Insurance however used 1% of their bailout funds to award some significant bonuses to their executives, which raises a question of ethical standards. Is it ethical for AIG to actually pay 1% of that money in bonuses to individuals that actually put them in this mess to begin with? It is clearly wrong in my book.
AIG insurance has no business spending bailout money on bonuses, and definitely has no business attempting to justify their mistakes. It is simply wrong and should not be taken lightly by the Obama administration. As taxpayers, we have paid major money for this bailout and yet hold no say over the path the insurance company should take. This is an outrage and a great example of why this economy is not getting fixed any earlier.
As a country we need to start paying attention to these things and need to make sure we start taking action by making sure our congressman and senators know the disappointment we share in regards to folks cheating us of all of our money.
Please leave us a comment and let us know how you feel about AIG insurance.
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April 29th, 2009 at 12:12 am
AIG Insurance company is a recognize company in Insurance policy so we can accept its services and make insurance policy.