The blog is sleeping... hoping to awake when the bailout insanity stops. Helping prop up the economy by staking failed corporate giants in exchange for nationalized interest and control is one thing. I'm for nationalization in cases like these, as long as the government exerts a control that's at least commensurate with its fiscal stake in the organization(s), and as long as there is an exit schedule to re-privatize the business with profitability thresholds, and lofty standards for the ownership parties replacing the government once the organization has grown a fresh set of sea legs. It's not fair, throwing financial flotation devices to large companies whose greed and irresponsibility got them (and us) here, when so many small and medium size businesses are operating above-board but don't get the same hook-up. But in the name of keeping most of us out of the bread line, perhaps it's necessary. This AIG business, however, is completely out of control.
Gov't: "Hey guys, you shamelessly bet it all on red 34 and lost. Thanks to you, the size of you, the unregulated irresponsibility of you, and how much the economy depends on you not screwing up this badly, we're in the HOV lane to Depressionville with the gas pedal glued to the floor. Here's $170 billion. Now we own 80% your ass. Don't spend it all in one place."
AIG: "Thanks, Uncle Sam! You don't mind if we give $165 million of it to our executives, you know, as a bonus for their, 2008, um, performance..."
Gov't: "Oh no you don't!"
AIG: "Well, um, we sort of already did. I mean, we promised that bonus money last year, before the economy crumbled. So these guys are, like, entitled to it? Maybe we can ask them to give half the money back?"
Gov't: [changing its underwear] "Uh, we're gonna have to get some rules in place here. Maybe we shoulda thought of that before giving you more money than the residents of an average U.S. town will collectively earn in a lifetime..."
What a clusterf**k. AIG's execs are the people who sent the whole s**thouse up in flames. Not only should they not be paid bonuses, their salaries should be rolled back and their compensation plan should be restructured into a more profit-based schedule. When you're at the helm, your financial success should rise and fall with that of your organization. Sure, a healthy base salary is in order. We all need a guaranteed income in exchange for showing up to work. But at the high levels of a large organization, compensation should be a back-end intensive deal. At my Fortune 500 company, not a single person was paid a bonus for 2008, all base salaries of $100g and up are frozen indefinitely, there's an indefinite moratorium on overnight travel expenses, and merit increases based on 2008 performance won't kick in until August. And we didn't lose much money, just a few million. We're just being fiscally conservative. And we're not a particularly wise organization. We're just not completely f***ing retarded.
When the blog awakes from this topsy-turvy nightmare, have a bowl of Honey Nut Cheerios ready for me, okay?