Jane put up a post about it, and both bmaz and I think its a con.
Furthermore, I have a much simpler solution to this problem for Mr. Geitner than the one proposed by AIG. Offer to fire them for cause–hey they ruined your company– don’t pay them "retention" bonuses. My solution saves over $100 million.
So, I’m reading the letter and I notice this quote:
We believe that there will be considerably greater flexibility to reduce contractual payments in respect of 2009, and AIG intends to use its best efforts to do so. It is expected that, over the course of the year, AIG Financial Products will sell certain businesses, employees will leave voluntarily or be terminated for cause and certain downsized employees will find new employment.
Here’s the thing, in the front part of the letter and in the white paper, they say they must, must, must pay the bonuses; yet in this paragraph they say they can renegotiate them or fire people for cause.
Sooooo, which is it? I know, I know, you already know the answer to that. So why doesn’t Tim Geithner?
Sign the petition to Congress: No More Dough Til We Know Where It Goes.