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If it was for a division that is making money and doing well, you could end up with those employees making money and doing well for another company.

Cut the branches that don't produce fruit. They apparently were.

resedit wrote:

If it was for a division that is making money and doing well, you could end up with those employees making money and doing well for another company.

Cut the branches that don't produce fruit. They apparently were.

Proost wrote:

resedit wrote:

If it was for a division that is making money and doing well, you could end up with those employees making money and doing well for another company.

Cut the branches that don't produce fruit. They apparently were.

These employees were making money for AIG - undoubtedly quite a bit more than this party cost.
This party was planned a year ago.

If AIG said "Sorry, it's cancelled" - there are plenty of other places that very likely would love to hire them, and given AIG's current status, they may very well feel inclined to leave for those other companies.

These kinds of things are part of the expenses involved in keeping your top earners onboard, and it is an investment that pays off.

Well, it could be said that stock options aren't quite the prize they used to be....

daemon wrote:

So are stock options.

If you had worked your butt off for a year, thinking you were going to get a nice trip; would you be satisfied with stock options that would likely be underwater the day you received them?

If so, perhaps you need to climb aboard the

Alien wrote:

Do you know what stock options are?

.tsooJ

Yes. They are financial options (contracts) that allow you to buy stock at a certain preset price - typically lower than the current market value. This allows you to take a profit in the future by either exercising your options and selling at the higher price, or selling the options to another investor.

However, options whose price are set above the current market value are considered "underwater", due to the fact that exercising them will cost you more than simply buying the same stock on the open market. Unless there is a strong belief the stock will recover, they aren't generally easy to sell.

They are generally used as rewards, since they theoretically tie your own gains with the company's gain - aligning an executives goals with the corporate goals.

In this case, no one is sure what is going to happen to AIG, or its component divisions. It could still end in bankruptcy, in which case there would be no stock to purchase (worthless options). On the other hand, a buyer might trade AIG stock for their own, making the options very valuable. The trouble is, no one knows - and the odds of the stock going down the tubes is higher than than the odds of the stock returning to pre-crash levels.

Also, due to new accounting rules, stock options are no longer arbitrary. They count as an expense. Thus, they would have to make the options reasonably close to the current market value. If they give options that are ridiculously undervalued, they have to take a hit on their books for the quarter in which the options were distributed. There is no way the government is going to sign off on that, so options in AIG are going to be more scary than a Friday night horror flick festival.

AIG life insurance workers caused this mess?

mentholiptus wrote:

$440,000 could pull 22+ families out of foreclosure, or give the pricks who caused this mess a fun weekend.

Each of the families in foreclosure who could have received $20,000 have probably already paid $20,000+ in taxes over their lifetime anyway, so really, they'd just be getting their money back.

Unacceptable.

This is bullsmurf.

Wrong on both counts.

1) $440,000 would pay off maybe a couple of loans. If you meant just "make current", you are simply delaying the inevitable - not much 'help.

2) The people who went to the spa were NOT the people who got AIG into financial trouble. They were the top performing life insurance reps. They actually made AIG money, and are part of one of the assets AIG may sell to repay their government loan.

daemon wrote:

LAY THE GREEDY BASTARDS OFF ANYWAY!! THE COMPANY CAN'T COVER THEIR PAY!

Actually - if they were told this would happen, it may have been legally a contractual benefit that could cost AIG a smurf of money in legal feed in addition to needing to pony up the cash if they didn't follow through.

You can't tell employees they will get a performance bonus and then say "Sorry, we changed our mind"

resedit wrote:

daemon wrote:

LAY THE GREEDY BASTARDS OFF ANYWAY!! THE COMPANY CAN'T COVER THEIR PAY!

Actually - if they were told this would happen, it may have been legally a contractual benefit that could cost AIG a smurf of money in legal feed in addition to needing to pony up the cash if they didn't follow through.

You can't tell employees they will get a performance bonus and then say "Sorry, we changed our mind"

Hopefully, they would understand why their "bonus" was delayed.

mentholiptus wrote:

1) I'm on the verge of foreclosure for reasons beyond my control.

I would be interested to know what those reasons are.

mentholiptus wrote:

Farmerkev wrote:

mentholiptus wrote:

1) I'm on the verge of foreclosure for reasons beyond my control.

I would be interested to know what those reasons are.

Yeah? How about I let you guess first.

Well, ok.
The most common is medical bills followed closely by divorce.
The medical bills would be "beyond your control", I suppose divorce might be considered that as well but that's more iffy.
It sounds like you still are employed so that isn't the cause unless you're on commission and sales are gone.
What else could be beyond your control I'm not sure.