Posted: Wed Oct 08, 2008 8:17 am Post subject: Corporation trumps Individual?
To all those that think corporations/people deserve to make as much money as they possibly can and also that ANYONE does ANYTHING to 'earn' tens of millions of dollars a year & that the corporation trumps the individual when it comes to government protection and regulation...
WASHINGTON - Days after it got a federal bailout, American International Group Inc. spent $440,000 on a posh California retreat for its executives, complete with spa treatments, banquets and golf outings, according to lawmakers investigating the company's meltdown.
There is no excuse for this. The article captions that under the current crisis, this party was necessary to keep the execs at ease and from leaving the company. Oh my. If I am sick and out of sick days at my job, I would have to come in to work. When my employer cuts my commission because things are tough, and they still drive their Mercedes and buy their $35,000 collectibles, I am told I have to tighten my belt and well, thats the way it is!
Give me a break. These corporations need to be regulated because it is obvious that they cannot regulate themselves. They are a danger to our way of life. Speaking of which...our 'way of life' needs to change. We do NOT deserve anything we want and we have to stop thinking that we do. The party is over.
Ok, I risk being called disgusting, but here goes. Having spent a good portion of my working career in that world, there are some things that need to be explained. AIG would benefit by explaining that "lavish" events like this require at least six months to a year to plan, and often require deposits or advance full payment. This would put the outlay of cash for the event prior to the bail out, but by appearance, the event took place as the cash was being doled out. In fact, it will take several months to dole out the bail out cash; the US Giverment (spelled the way I want it) simply does not write a big check. Perhaps it explains why AIG is bankrupt. Three corporations I worked for treated execs like this and went broke; they simply did not have the cash to sustain a caviar lifestyle. However, it is a little short sighted to simply conjecture that taxpayers paid for the retreat. We might be paying the bill that has come due, or we might be paying debts to banks that loaned the money to AIG for actual operational expenses part of which is expensive executive retreats, both of which are signs of excessively arrogant and bad executive management. I know this sounds likes semantics, but the next time you buy Microsoft products, follow the money and find out what they pay for their annual employee parties, executive retreats, corporate jets, and all of the free food in the employee canteens and you will choke on the price of a Vista upgrade. The blast I will get is that Microsoft doesn't need a government bail out and my response is "yet".
I must say the thought had crossed my mind that all of most of the expenses for that retreat might have been paid in advance, ie before the bailout, so the executives might have not seen much point in cancelling .
Either way, it's typical of the way they see things, that other people, not them, must tighten their belts.
Ok, I risk being called disgusting, but here goes. Having spent a good portion of my working career in that world, there are some things that need to be explained. AIG would benefit by explaining that "lavish" events like this require at least six months to a year to plan, and often require deposits or advance full payment. This would put the outlay of cash for the event prior to the bail out, but by appearance, the event took place as the cash was being doled out. In fact, it will take several months to dole out the bail out cash; the US Giverment (spelled the way I want it) simply does not write a big check. Perhaps it explains why AIG is bankrupt. Three corporations I worked for treated execs like this and went broke; they simply did not have the cash to sustain a caviar lifestyle. However, it is a little short sighted to simply conjecture that taxpayers paid for the retreat. We might be paying the bill that has come due, or we might be paying debts to banks that loaned the money to AIG for actual operational expenses part of which is expensive executive retreats, both of which are signs of excessively arrogant and bad executive management. I know this sounds likes semantics, but the next time you buy Microsoft products, follow the money and find out what they pay for their annual employee parties, executive retreats, corporate jets, and all of the free food in the employee canteens and you will choke on the price of a Vista upgrade. The blast I will get is that Microsoft doesn't need a government bail out and my response is "yet".
You miss the point. The party after the bailout is just bad timing maybe...but the spending is the problem. The spoiling of execs and the gimme gimme attitudes, not to mention the BAD decisions these execs obviously made.
It is all perception. We did indeed pay for this party...whether before or after the fact.
I do think most sales organizations have to put on huge events such as this to keep their sales force loyal, content and feeling appreciated. But this particular situation is ridiculous.
$440,000 was spent for this spa weekend.
70 top performers attended as a reward for their performance
$440,000 / 70 = $6,285.71 per person
What I'd like to know is if this spa weekend was the entire reward or simply an additional perk to their annual bonuses. To some people a $6,285.71 spa weekend sounds extravagant, but to sales people earning $200,000+ it is basically expected and an insult if not received. In fact I'd expect a hell of a lot more than a spa weekend if I were a top performer for AIG.
According to the Washington Post, "AIG, the world's largest insurer, said it has already drawn down $61 billion on its $84 billion line of credit from the government." I believe this means they have already started to use that money, shawnrohrbach.
This party should have been dramatically scaled down and even canceled. In corporate America bonuses are usually withheld when goals have not been achieved. And these execs MUST have seen the financial crisis they were in back when they were starting to plan this weekend spa vacation.
AIG gave the former CEO, Martin Sullivan, a 47 million dollar severance package; he had been there only 2 years, and the company had its worst year on record under his stewardship...
What is wrong with corporate America? There is a fundamental disconnect between executive compensation and company performance. It is nothing more than the complete thumbing of the nose at investors--and now a colossal slap in the face to the American taxpayer who is bailing out their mess.
I do think most sales organizations have to put on huge events such as this to keep their sales force loyal, content and feeling appreciated. But this particular situation is ridiculous.
$440,000 was spent for this spa weekend.
70 top performers attended as a reward for their performance
$440,000 / 70 = $6,285.71 per person
What I'd like to know is if this spa weekend was the entire reward or simply an additional perk to their annual bonuses. To some people a $6,285.71 spa weekend sounds extravagant, but to sales people earning $200,000+ it is basically expected and an insult if not received. In fact I'd expect a hell of a lot more than a spa weekend if I were a top performer for AIG.
According to the Washington Post, "AIG, the world's largest insurer, said it has already drawn down $61 billion on its $84 billion line of credit from the government." I believe this means they have already started to use that money, shawnrohrbach.
This party should have been dramatically scaled down and even canceled. In corporate America bonuses are usually withheld when goals have not been achieved. And these execs MUST have seen the financial crisis they were in back when they were starting to plan this weekend spa vacation.
Unfortunately, bonuses are not withheld in many if not most cases. They are typically part of a hiring contract and if there is no performance clause, the corporation must fulfill their contract with the executive and pay. I noted the execs from WaMu, who were legitimately and legally entitled to millions of dollars in bonuses, even though they had only worked for a very brief time before WaMu went banko, chose not to accept the money. Good for them. As for the perception of excess, I did note that I believe the arrogance and stupidity of AIG executives who would host such a party lead to their downfall. If it was niot clear in my original post, let me be clear here; I oppose that bail out vehemently. Unfortunately, too much of a fragile economy is tied to AIG and their ultimate demise would adversely affect too many innocent people.
Required reading/viewing. Canadians recently went to the polls for a national election, only 58% of the eligible votes had their say. This proves the denigration of the democratic process by nonpolitical interests. Thank heavenly powers that it is still a minority Conservative parliament.
Required reading/viewing. Canadians recently went to the polls for a national election, only 58% of the eligible votes had their say. This proves the denigration of the democratic process by nonpolitical interests. Thank heavenly powers that it is still a minority Conservative parliament.
The last time I checked back in June when I went to the polls for a local run off election in preparation for the November elecrtion here in the States, I was free to drive up, park my truck, get out, announce my self to the volunteers, got a ballot, filled it out in private, slide it into the ballot box and leave. At no time did any corporate black suits, government goons, NWO representatives or little lizards try to stop me. What it took was getting my butt up off the couch and go out and vote. It also required I read about the issues and candidates. OMG what a trying task. If Canada, like the United States, is suffering from voter apathy, blame the voters.
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