Am I The Only One NOT Mad That AIG Is Paying The BIG Bonus?!?

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Mortgage and Lending with First Time Home Buyers, Pre-approvals, Fixed Rates 172223

Ok, so maybe I should be mad too.  And depending on a few answers maybe I will be.  But right now I feel like it's premature of me to be upset at AIG for paying bonuses.  Because BEFORE I get mad, I want to know WHO got the money!

Look, AIG has its hand in A LOT!  That company has been described as an Octopus because there are SO many aspects of what AIG does.  SO...lets use this analogy.  I, Chad McDowell, working for Elite Home Loans in Nashville, TN agreed to work under the condition that if I closed X amount of loans for the year I would be compensated with an additonal bonus.  And lets say that I closed that number.  Now, we also have ReMax Elite downstairs.  If ReMax Elite doesnt carry their weight or even risks the profitability of the company, that doesnt void my contract.  I still deserve the bonus I earned. 

Every body seems to look at AIG as some huge monster, and to a big degree it's certainly a pariah now.  But, you do NOT get that big without good employees, working hard for BIG BONUSES!  And if they dont get that money from AIG, they will get it somewhere else.  Does losing their top producers help their chances of success?  And you and I might feel that the bonuses paid are ridiculously high...but that's the going rate!  Its just like athletes or entertainers, they make the big bucks.  If we think its too high, maybe we should have invested more then two weeks and $350 into our job training and gone to a better school and competed for THOSE jobs!

All this being said, I dont believe that we should have ever bailed them out in the first place.  There should be no such thing as "too big to fail".  It didnt work for the Titanic, shouldnt work for AIG.  BUT, since we did keep them in business I dont see that they have much choice then to honor the contracts that were already in place.  

                                                                                          

I know it wont be a popular opinion.  Everybody hates rich people until they become one.  Why did we get into the business that we're in?  It wasnt to go broke right?  All of us had some kind of vision of the kind of money that could be made in real estate.  We also know how hard we work, and if it takes THIS much work to make THIS much money, imagine what the job requirement is for an employee making THOSE kinds of checks...do you REALLY think its that easy?  Too many people think that "Hard Working American" only describes the middle class.  But hey, rich people didnt get rich by being lazy.  And yes, the middle class absolutely is the backbone of this country, but there would be no middle class without the rich.  Everyone with a job works for someone, right?

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Rainmaker
1,026,478
Gary L. Waters, Broker Owner Waters Realty of Brevard, LLC
Waters Realty of Brevard, LLC - Melbourne, FL
Personal Service, always.

Not everyone (but many, for sure) hates rich people....but I do believe they have disdain for those who got rich by taking advantage of others.

Mar 17, 2009 02:12 PM #1
Rainer
5,285
Andrew Kearney
Culpeper, VA

I don't hate people with money, just people with more money than I have... jk.  I think people are just mad that they are paying tax dollars to pay salaries to people who already have more money than they do.  It makes me pretty mad, I have absolutely no extra money right now, spending only on the necessities such as food and housing, and to see my HARD EARNED dollars go to people who probably aren't working as hard as I am makes me pretty mad.

Mar 17, 2009 02:15 PM #2
Rainmaker
737,342
Chuck Carstensen
RE/MAX Results - Elk River, MN
Minnesota Real Estate Expert

I think the bail out money should have been used to help the total company...not a few BIG BONUS...the money was a waste.

Mar 17, 2009 02:27 PM #3
Rainer
32,779
Chad McDowell
First Time Home Buyers, Pre-approvals, Fixed Rates - Nashville, TN
FHA and VA Mortgage Loans Tennessee

Andrew,

I'm with you, a lot of us are struggling, myself included.  And I HATE seeing my tax dollars going to AIG and other companies.  But its the bailouts I hate.  Not the employees who are receiving payments on contracts that were in place before hand, and whom I suspect probably worked very hard for those bonuses and likely werent the reason for AIG's collapse. 

Here's too some additional compensation for us both this year!

Chad

Mar 17, 2009 02:28 PM #4
Rainmaker
194,622
Sandy McAlpine
McAlpine Properties - Cornelius, NC
Search Lake Norman Homes For Sale - Lake Norman NC

It sounds like the company was able to reward the same employees who ran the business in the ground in the first place. Sounds like there needs to be an overhaul

Mar 17, 2009 02:28 PM #5
Rainmaker
871,066
Steve Loynd
Alpine Lakes Real Estate Inc., - Lincoln, NH
800-926-5653, White Mountains NH

Chad...What are these knuckleheads thinking, to announce the bonuses in the wake of all these bail-outs I wonder if the company ever thought about hiring a PR. firm?

Mar 17, 2009 02:32 PM #6
Rainmaker
570,048
Bill Gillhespy
16 Sunview Blvd - Fort Myers Beach, FL
Fort Myers Beach Realtor, Fort Myers Beach Agent - Homes & Condos

Hi Chad,  The great bulk of those $168 gazillion in bonuses went to a particular division of AIG.  That division deals with the highest risk investments and it now seems clear that the risk management was totally thrown out the window !  Thus, this division almost single handedly brought AIG to its knees.  I believe in risk/reward but these guys ensured some short term profits and intentionally ignored the most basic guidelines !  So, the group most responsible for the collapse stands to get the highest reward for a job well done !

Mar 17, 2009 02:33 PM #7
Rainer
32,779
Chad McDowell
First Time Home Buyers, Pre-approvals, Fixed Rates - Nashville, TN
FHA and VA Mortgage Loans Tennessee

Sandy,

It seems that way, and I'm still trying to find out for sure.  WHO gets the bonus will certainly determine whether or not I think I should be mad or not.  If its some high ranking exec, who's decision making ran the company into the ground...not cool.  If its a hustling sales exec who was actually instrumental in creating production and money from a particular aspect of AIG...I'm not that mad at that. 

Steve,

Could not agree with you more!  Why dont they just schedule another Vegas Vacation while they're at it.

Thanks both of you for the comments!

Mar 17, 2009 02:37 PM #8
Rainer
44,217
Sharon Fleming
Real Living Realty Unlimited - Port St Lucie, FL
Realtor, Port St Lucie-Florida

I have to disagree stating that they do in fact "deserve" these bonuses, if in fact these bonuses were attained through deceptive practices, which I am almost sure that common sense tell us that they were, then no I do not think they need to be paid these bonuses.  I am sure that there are exceptions, those that delt honestly and fairly, and maybe they do deserve a PARTIAL payment of the bonus, but I also know that the ones getting these bonuses were not in it for the right reasons, it surely was not to help anyone, it was just to get rich quick, if it were so easy we would all be doing it.  Giving out bonuses to employees that helped a company report a record high loss just doesnt seem fair, maybe the whole company needs to be restructred, and bonuses, the purchase of $24 million dollar jets and extravagant "meetings" @ plush hotels,  should be placed on hold for a while. 

This infuriates me to no end, although I do respect your opinion, this is a great post....Thanks!

Mar 17, 2009 02:39 PM #9
Rainer
32,779
Chad McDowell
First Time Home Buyers, Pre-approvals, Fixed Rates - Nashville, TN
FHA and VA Mortgage Loans Tennessee

So, the group most responsible for the collapse stands to get the highest reward for a job well done !

That's what I've been waiting to hear, who is getting the $$$...Thanks Bill for the response!

Mar 17, 2009 02:39 PM #10
Rainmaker
535,564
Robert Hammerstein
Keller Williams Valley Realty - Hillsdale, NJ
Bergen County NJ Real Estate

Chad - I do agree with you. It is an outrage that these bankers that are milking the public to install new bathrooms and take limo's with our bailout money is outrageous! They just don't get it it seems. I don't have anything against rich people as you say only those that take advantage of a situation that needs to be corrected by their own deeds. It's a sad day when greed is more important then humanity. Like these people cant take a pay cut? Go get em Obama is what I say. Just my 2 cents.

Mar 17, 2009 02:41 PM #11
Rainer
32,779
Chad McDowell
First Time Home Buyers, Pre-approvals, Fixed Rates - Nashville, TN
FHA and VA Mortgage Loans Tennessee

Sharon,

It infuriates me too.  I just want to make sure I'm infuriated at the right people!  In all likeliehood you're right and 90% of what's going on is completely shady.  But I'm enjoying the debate!  Thanks for the comment! 

Chad

Mar 17, 2009 02:49 PM #12
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