Pittsburgh Legal Back Talk

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Backtalk Requested: Bonusteria.

Posted By Cliff Tuttle | March 20, 2009

Posted by Cliff Tuttle

If there is anyone on earth who thinks that it was justifiable for AIG to pay its last round of bonuses, that person is being very, very silent. The public rage was instantaneous, unanimous and monumental.

So, answer a few simple questions:
1. How did the AIG employees who earned bonuses qualify for them?
2. What benefit did AIG derive from the efforts that earned the bonuses?
3. Are the people who received the bonuses earning more money for AIG than the value of the bonuses? How much more or less?
4. Can AIG find people to replace the bonus-earners who will make as much or more money for AIG without being paid a bonus?

What? Not a clue?

Then why are you so outraged?

The AIG bonus babies might be the geese that laid the golden eggs. Remember that story about Ross Perot? He reportedly earned the maximum annual commission on sales in January and then, rather than be paid nothing for the rest of the year, quit.

Ask questions. Get the evidence.

Then, go ballistic.

Back Talk requested.



CLIFF TUTTLE has been a Pennsylvania lawyer for over 45 years and (inter alia) is a real estate litigator and legal writer. The posts in this blog are intended to provide general information about legal topics of interest to lawyers and consumers with a Pittsburgh and Western Pennsylvania focus. However, this information does not constitute legal advice and there is no lawyer-client relationship created when you read this blog. You are encouraged to leave comments but be aware that posted comments can be read by others. If you wish to contact me in privacy, please use the Contact Form located immediately below this message. I will reply promptly and in strict confidence.

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