AIG executives are threatening to quit if their compensation is reduced by the pay czar for the bailout, Kenneth Feinberg. (When the government appoints a “czar” to fix a problem the problem is usually unfixable i.e. “drug czar”, “bailout czar”, “auto czar”.) Anyway, these executives sent written notices of their intent to resign by year end if the pay cuts are made. Two have already rescinded their threat (perhaps afraid that someone might call their bluff).
This is the same AIG that took $180 billion in bailout money. This means that the United States government owns roughly 80% of AIG. As part owner I say: “Make my day.” Go ahead and quit and get in the unemployment line with milions of your fellow americans. Test the market place. Get a job making half a million a year plus bonuses. Those are plentiful.
I’m not a fan of government bailouts and I’m certainly not in favor of government dictating how much money you earn. BUT this is different. AIG was on the precipice of disaster and their poor business judgment almost toppled our entire economy. If I was the lender of last resort for a failing company (in essence a receiver), I would insist on strict compensation restrictions until the money was paid back and the company was financially stable.