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Dear Mr. Liddy: I quit
American International Group offices in New York City.
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TEXT OF STORY
Bob Moon: Today's New York Times carries a bitter letter of resignation from one of those AIG executives who'd been taking heat for taking big bonuses.
Jake DeSantis is a VP of the company's financial products unit, and he complains that he and most of his division were in no way responsible for the transactions that brought the company down. In fact, he points out he's spent long hours away from his family, agreed to an annual salary of $1, and has worked hard to dismantle the company, which he says is crucial to repaying the American taxpayer.
He also argues that neither he nor his colleagues should be cheated out of agreed-to payments -- in his words -- "any more than a plumber should be cheated after he has fixed the pipes, but a careless electrician causes a fire that burns down the house."
Still, he says he plans to give any bonus money he receives to organizations helping those suffering from the economic downturn.
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Why is it so surprising that execs who agreed to work for an annual salary of one dollar expected to get a bonus as had been agreed in the retention contract? The agreement to work for the one dollar hit the media but somehow no one seems to have known and understood that there were other provisions to the contract until the money was paid. If Congress really wants to tax at a 90% rate, they should study the Swedish tax system.
I find it disturbing and utterly hypocritical that we keep mentioning that these people had to accept a salary of $1/year when in fact they got a bonus (in this specific case) of $742006.40.
Their final net compensation is still incredibly large, and this while their company is kept afloat with tax payer money.
Maybe it's time for these people to understand that, since the government owns 80% of their company, their compensation ought to be controlled and/or taxed by the government. If this is not agreeable they can certainly leave and find another job, as many of us are forced to do now, thanks to the reckless behavior of companies like AIG.
I read the complete letter in NY Times. To earn 742K and change, he claims to have produced profits in excess of 100 million each year. If true, he deserves what he earned. As well he claims the people who are responsible for CDS mess have already left the company and rest are there to plug the hole craeted by them and save this ship. If this is true, he has every right to feel betrayed.
While I could understand the anger of general public who have lost their life savings in this mess, I am surprised and disappointed in the way politicians are playing this game. Especially Congress and AG of NY and CT. They seem to change the tune every single time and add fuel to the fire with their media based interrogation. Some of the questions they ask are plainly stupid and jingoistic at best. "Tell me the bonus getters now?". Come on, Group up people. The problem is not with 100% WALL ST. The problem is with the process and 1-2% of the people who made good with the loopholes at the expense of 98% of the rest. Gross Vilification will not create trust. As bad as it sounds, Forgiving what has happened, learning the mistakes and taking steps to prevent the mistakes in future and MOVE ON is the best thing rather to find villains in this mess and shame them. Most people are like Mr.DeSantis, who did what they thought was right and played by the rules and now upto loose everything.
Cute letter of resignation, but I still find it very hard to feel even the slightest bit of sorrow for someone who made more in one year than most people will earn in a lifetime. What did he really do to earn it? Not much buy the look of things...
Mr. DeSantis has every right to be upset, he is one of many being thrown to the wolves for political cover.
The people of the Unites States could only be so lucky if Congressman Frank and Senator Dodd would follow the lead of Mr. DeSantis and decide to resign since the are more deserving of losing their jobs.
After reading Mr. DeSantis' woeful resignation from AIG, I am a bucket of tears. RIGHT. He may not have been personally responsible for the downfall of the company, but he worked - headed a unit of the problem division. When every American company is asking for pay reductions, opting to not pay promised 401-K matches and as a result of the debacle at AIG et. al. I have lost more than half of the meager amount in my 401-K.
To whine that the congress and the American people dishonor him because we don't feel that bonuses in a failed company is prudent when the company is operating on tax payer funds is rather thin skinned. As I have been told many times, "get over it."
Yes, I am angry that he gets hundreds of thousands in bonuses when I am in a lose, lose situation.
The real villains are sitting fat and happy in Congress and the White House: Pelosi, Reid, Frank and Obama top the list. Let them give back their "bonuses" - campaign donations from AIG execs - and be held accountable for playing in the same sandbox.
The plumber analogy is the most flawed logic I've ever heard. Apparently Mr. DeSantis does not recognize that the plumber is an independent entity. Mr. DeSantis' divisin of AIG is not and the company as a whole is in the tank. Somehow, I can't picture myself demanding a bonus when my company is in the tank becuase I performed well even though the sales staff didn't do their job. When you're in the back of a lifeboat that springs a leak in the front, you all sink together.
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