Let's be clear, it wasn't only top AIG executives getting bonuses... 70+ employees received bonuses. I'm sure not all of these were top executives and I'm sure some of those employees did actually perform well. The fact that some of AIG's employees fucked up and do not deserve a bonus shouldn't mean those who actually did a good job should suffer as well.
Agreed. But I'm sure some of those employees actually did perform well, despite the performance of AIG as a whole. Therefore, if all bonuses were not paid out/taken back, the good performers would leave the company for a company who pays bonuses, and those who didn't perform well would stay with AIG because they know they performed poorly. So the net effect of not paying/taking back the bonuses would be for AIG to retain underperforming employees, and force out the high performance employees.
Because obviously not as many employees performed as those who did not... I honestly believe that AT LEAST 1 of those 70+ employees who received the bonuses in question did a good job and deserved it. Obviously the top brass fucked up and should not get bonuses. But I'm sure someone down the 70 man ladder worked hard, did a good job, and deserved a bonus. When that 1 employee who deserved it gets asked (told) to give back his/her bonus, the reaction will be "fuck you I'm going to a firm that rewards my hard work".
Yes but this is supposed to be capitalism - no profit, no bonus. Employees have a responsibility to pick their employers wisely.
Bonuses of this magnitude could be a phenomenon most commonly found during equity and economic bubbles. Maybe this issue will self-correct as these bubbles deflate and unemployment rises.
Bonuses based on overall profit are usually for top executives only. An employee way down the food chain likely has a different performance measure other than profitability. It is entirely possible to pay a bonus to some employees without being profitable. Again, I am not agreeing with AIG giving bonuses with taxpayer money. My argument is that the actual good employees who deserve a bonus need to get that bonus because if they don't they'll leave the company. While AIG is horribly unprofitable at the moment, they still need to offer competitive compensation to retain valuable employees.
"I was an invaluable employee that the company could not possibly do without." "Now they know where I am 24 hours a day"