AIG: Your taxpayer dollars at work

[REWahoo]

AIG execs went on $500K retreat within days of taxpayer bailout

Rep. Elijah Cummings, D-Md., described what investigators found during a hearing this morning on Capitol Hill:

Quote:

After the bailout of AIG last month, the United States government effectively bought an 80% share in the company. That should have caused a fundamental change, you would think, in how the company was spending funds on compensation, bonuses and benefits. But it doesn't look like that's what happened. The committee learned that shortly after the bailout went through, executives from AIG's major U.S. life insurance subsidiary, AIG American General, held a week-long conference at an exclusive resort in California. The resort is called the St. Regis Monarch Beach. ... It's very impressive. This is an exclusive resort. The rooms start, gentlemen, at $425 a night. Some are more than $1,200 a night. ... We contacted the resort where AIG held this week-long event, and we requested copies of AIG's bills. We learned that AIG spent nearly $500,000 in a single week at the -- at this hotel. Now, this was right after the bailout. ... Let me describe some of the -- the charges that -- that the shareholders who are now U.S. taxpayers had to pay. Check this out. AIG spent $200,000 for hotel rooms, and almost $150,000 for catered banquets. AIG spent -- listen to this one -- $23,000 at the hotel spa and another $1,400 at the salon. They were getting their manicures, their facials, their pedicures and their massages while the American people were -- were footing the bill. And they spent another $10,000 for -- I don't know what this is -- leisure dining.

"...another member of the panel explained that "leisure dining" means they drank at a bar."

Guess they figured they were toast anyhow, might as well have one last fling.

[saluki9]

Wait a second! Corporate executives like to spend shareholder money on frivolous activities and opulent surroundings?

Somebody sound the alarm!

[soupcxan]

The cool thing about the interwebs is that you can actually see a copy of the $450,000 bill from the hotel:

http://oversight.house.gov/documents/20081007102513.pdf

To be fair, it was reported that this event was scheduled a year ago and was used as an incentive for the top 10% of salesmen, not just a bunch of execs on a corporate retreat. If you have employees who have worked to hit their numbers all year in pursuit of a bonus and then you yank it out from under them at the last minute, I'm sure most of your best performers are going to start looking for other employment - and if the best employees leave, how are the taxpayers going to get their $85B back? Regardless, it certainly looks bad for AIG.

[ziggy29]

Quote:

Originally Posted by soupcxan To be fair, it was reported that this event was scheduled a year ago and was used as an incentive for the top 10% of salesmen, not just a bunch of execs on a corporate retreat.

My employer has sent me to a couple of those. These things are planned and sometimes paid for well in advance, but yeah, the timing on this is terrible.

[CompoundInterestFan]

Quote:

Originally Posted by soupcxan To be fair, it was reported that this event was scheduled a year ago and was used as an incentive for the top 10% of salesmen, not just a bunch of execs on a corporate retreat. If you have employees who have worked to hit their numbers all year in pursuit of a bonus and then you yank it out from under them at the last minute

You'll forgive me if I don't really give a sh*t. The fact that they still went on this "retreat" is ridiculous. I think the $85 billion bailout should be all the incentive the top salespeople need at this point.

[Notmuchlonger]

Tax dollars spent on a crazy war or this. Who cares

[Nords]

Quote:

Originally Posted by REWahoo Rep. Elijah Cummings, D-Md., described what investigators found during a hearing this morning on Capitol Hill:

Are the politicians outraged-- or just envious?

[socca]

Reminds me of a silly, fun book I just finished reading:

Amazon.com: Executricks: Or How to Retire While You're Still Working: Stanley Bing: Books

Ignore the poor amazon reviews - for the most part the reviewers thought they were getting yet another biz self-help book. Instead, Bing delivers a thoroughly irreverent and highly tough-in-cheek (almost to the point of gagging) look at executive life. Recommended.