AIG warns its workers as public furor grows
Filed under: Company News, Economy
American International Group (AIG) is telling its workers not to wear items with the company logo on them because of security worries. According to The New York Times, an advocacy group is planning to run a bus tour of the homes of AIG executives. And some executives have gotten death threats.The reaction to AIG's payment of $165 million in bonuses has inspired a level of vitriolic hatred that probably eclipses earlier scandals, including Enron. It's the main topic of both mainstream and new media. Jay Leno quizzed Barack Obama about it on Thursday's "Tonight Show." CNBC continues to blather on about it incessantly.
Of course, members of Congress have reacted with lightning speed. The House of Representatives passed a 90 percent tax on bonuses given to employees with family incomes above $250,000 at companies that have received at least $5 billion in government bailout money. A similar bill is pending in the Senate which the Associated Press says is less punitive.
Outrage over the bonuses is so severe that it makes AIG's survival problematic. "To the average American and to the average politician, AIG is a big amorphous behemoth that is taking money from the public and giving it to people and companies they should not be giving it to," said Michael Kempner, CEO of the MWW Group, a public relations firm that's not advising AIG, in an interview. "That's the perception."
Kempner, who is based in East Rutherford, NJ, said AIG can't solve its problems by hiring a public relations firm. The company will need to "stop listening to their lawyers" and show significantly greater transparency, he said. Even then, that might not be enough.
"AIG has become the symbol of everything wrong with America," he said. "I don't think you have ever seen the level of hostility and the breath of hostility toward a company and its people. If the company survives -- and I am not sure it can -- there is no way to put perfume on this pig."
The uproar over the bonuses paid to AIG has brought back memories for former Enron spokesman Mark Palmer. "I have been thinking about those folks," said Palmer, now head of public relations for Sysco Corp. (SYY), in an interview. "We are in a period of vilification that is largely politically driven . . . You can't really understand it until you are in the middle of it."
Palmer, who was not implicated in any wrong-doing at Enron, said he sympathizes with AIG workers, as the "vast majority had nothing to do with credit default swaps." Others have argued that denying bonuses to AIG workers who contractually fulfilled the terms of their contracts is illegal and could scare away people from financial services firms where such payouts are commonplace.
"It's actually been a benefit to me professionally," he said. "We had a little bit of security [at Enron]. I got some really sick phone calls myself because my name was on so much stuff."
Still, he's not eager to live through an experience like the problems at Enron or AIG again. But he reminds us that the controversy over AIG will die down eventually.
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Reader Comments (Page 1 of 28)
3-20-2009 @ 3:07PM
ChrisBFLA said...
Anger is misdirected. Want to be angry? Be angry at the buffoons in congress and the senate like Chris Dodd and the tax cheating head of the treasury department Gietner. They KNEW all about these bonuses for months. This is a cover up to the bail out debacle of Barak O-Vomit and the Democrats. Maybe these guys worked hard for their bonues. In different departments, they don't see the big picture. What about Enron managers who thought the company was on solid ground? How is it their fault that congress passed laws mandating that banks lend money to uncredit worthy home buyers? Want to blame someone, blame the morons we elected including that dope who was on J. Leno the other night!
Reply
3-20-2009 @ 3:28PM
Pat said...
+1
3-20-2009 @ 3:30PM
Jim said...
Thanks, Chris, for the Limbaugh talking point. Where would our economy be without you apologists for the greed and excesses of the ultra rich. Funny how most Americans, however, see something very, very wrong in employees receiving enormous bonuses after tanking their company.
3-20-2009 @ 3:37PM
frank said...
to ChrisBfla, you must be one of the GOP still fighting for Palin to be President. If your thoughts are for real I feel ligitimately sorry for you. Your loyalty should be to your sitting President and your country. You obviously have no knowledge of what went on in AIG and why the Congress and the administration is trying so desperately to clean of the previous administrations mess. How you can say the things you and others say absolutely amazes me. The GOP didn't have the balls to reel in the reins of the Bush Administration for eight years and now we have this. Man grown up and get informed!
3-20-2009 @ 4:42PM
Julie said...
What about the baffoon that started the misguided first stimulus package? If that would have been handled correctly maybe we (the taxpayers) wouldn't own 80% of a company that can't pull it's head out of you know where!
3-20-2009 @ 4:25PM
Robert Bunch said...
Chris does BFLA stand for Big Fucking Loser Asshole? You're an irrational moron!!
3-24-2009 @ 10:52AM
LittleBusinessman said...
ChrisBFLA has it right, the clowns wasting the most of OUR money are in Wash DC. Why is everyone so upset about the little sum of 165,000,000? Obama and his cronies are up to 2,600,000,000,000 already. The 165 Milllion in AIG bonuses is only .00635% of Obama's Splurge!!! If today's Government would just let thing happen this recession would end sooner rather than later! Heaven help Obama's cabinet to open their eyes and see the real world as seen by the rest of us little business people. At this rate we will all work for the US government someday.
3-20-2009 @ 4:55PM
justin said...
The anger is not misdirected there should actually be more, and there is plent to spread around. What nobodys seems to realize is that AIG will never go bankrupt, no matter how much they screw up. Congress won't let it happen, All Gov. worker from the Pres. to your postman have AIG as their main securities and 401K benefactors. All the crooks in congress used our tax money so thier 401ks didn't crap out. For all of Congress's grandstanding, to me, we are already a socialst nation. Only the rich are sharing with the rich, and taking from the middle class, while the poor get even poorer. Makes me sick. AIG will F#CK up again, because, they can. Congress will bail them out everytime and they know it. MAKES ME SICK . And bonuses r u kidding me. I work for my dad and when business is slow I make less. Regaurdless of how much I work. If your using tax money you have to be a team player, if that means you dont get a bonus, TUFF SH!T.
3-20-2009 @ 5:22PM
native indian said...
Obama and congress has put all those people in danger. they dont give a shit, as long as it takes the attention away from what they did to cause this problem, dodd, and timmy the tax cheat knew way ahead of time . shame on those losers. god, do we have a clown for a president? and a congress full of high school kids?
3-20-2009 @ 5:36PM
salome said...
100%...spOt on in my humble opinion-
anyone NOT understanding what's going on right now,right in front of your own 2 eyes should step back.
House of cons commonly called con-gress,wrote this scatology and most definitely were AWARE of aig's reward system. So now these same buzzards will write legislation
allowing "them" to (a).take money away when they feel like it.
(b)tax anyone's bonus/incentive pay 99%.
wake up and react......but this is only IMHO.
You ready for "mandatory volunteerism " ?
google HR 1388 which has passed in con-gress and is on the way to the senate.
Hope all got what they voted for.
3-20-2009 @ 5:46PM
John said...
No anger here as you know it. The "bonuses" are just a sympton of all in the overpaid, greedy wealthy class. Tax em. Tax the shit out of em. Restore some equality to our society before this democracy becomes even more disfunctional.
3-20-2009 @ 9:13PM
Perk said...
100% right you are Chris~ people are ingnorantly following what the MSM tells them to be "OUTRAGED" about...want the truth pay attention to what congress is doing, look at the bills being proposed & watch Glenn Beck..He won't hide the truth from you...
This goverment is ridiculous...
since when is it a crime to be successful. those were retainer bonuses not performance bonuses! big differance....
Be Angry about the fact that our constitution was just broken by the house passing a law taxing these aig ppl 90%..!
"Hey..Joe the Neighbor..we feel like taxing you today so gimme all your money!"
Welcome to communism ppl....keep following the shiney object on your right while they screw you over on the left..
EVERYONE IS WELL AWARE THAT WE JUST PRINTED SOME FRESH NEW MONEY YESTERDAY RIGHT?
Or were you all so busy being fooled by the big show & poor Mr Liddy's chastizing on national television...that man came out of retirement to try an right the sinking ship of AIG & had nothing to do with anything prior the bailout..he gets $1 a yr salary....YOU PPL ARE SO CLUELESS
now that we printed a nice new stack of a trillion $$$
Buh bye dollar..better get your gold & ammo (if you can find any)
3-20-2009 @ 6:50PM
Scott said...
Barak-o-Vomit????????What a classless individual.I'm a Republican and even I find that offensive.I hope you are countinuing to attempt to educate yourself and hopefully will be able to comment on the next issue with more intellect.
3-20-2009 @ 6:35PM
Sarah said...
I think you don't really know what you are talking about. AIG has taken American Tax payers money and gave it to banks in Europe, Sweden, France, Germany and Great Britian. AIG insures the debt banks take on whether it is supported with colateral or not. I have a charge card with US Bank. Without my knowing they charged my checking account for $22.60 for disability insurance. I am retired, 74 years old, have health insurance, car insurance, house insurance & LIfe insurance, with a set income which would not stop if I were to become ill. They probably did this for all people holding a credit card with this bank...This is fraud. I had never missed a payment or ever been late. I was angry with my bank for releasing my info to these people.
3-21-2009 @ 4:38AM
Mindi said...
Native Indian--They aren't from highschool,no no no!! Pre-K!! LMAO!!!!
3-21-2009 @ 6:37AM
Mary said...
Right On... The democrats are responsible for this and are setting up a smoke screen to cover up their mistakes by using those who received bonuses as their fall guys. They are trying to create hatered and outrage in our country and we are allowing it.
3-21-2009 @ 8:21AM
Deb said...
Wonder how many of those who received the big bonus' were republicans?
3-21-2009 @ 11:21PM
Denny said...
You nailed it to the cross! The vast majority of the people in this country haven't a clue as to why we're in this mess. And to make matters worse the current administration is in way over their heads.
3-21-2009 @ 9:09AM
VNVet said...
Except for your name-calling, which I don't think necessary, I agree with what you have said 100%. People gain need to think for themselves and see the truth as to what this administration will do to this country if people don't wake up and hold the guilty accountable. Stop being led and lied to by the far-left, think for yourselves...
3-21-2009 @ 9:24AM
Sristar2 said...
Ditto!!!!!