The financial crisis has definitely proven one point wrong. Greed is not good. One can only imagine the lack of apathy behind some of these companies that are still allotting funds for corporate bonuses. No taxpayer wants to hear about how some executives spent their holiday on the company account or the thousands of dollars these suits will be receiving when taxpayers know who is paying for those.
The federal government has had a watchful eye on companies who received bailout funds on how they spend taxpayer’s money. Not long ago, the president himself criticized the Citigroup’s plans of purchasing a jet even going at length to propose a salary cap on all executives.
Insurance giant AIG has announced that they will be scaling back bonuses and compensation for their upper-tier employees. AIG, however, justified that some of these bonuses are unavoidable since they are legal obligations in their employment contracts. AIG posted a $62B loss in the last quarter of 2008 and has already received $170B in bailout funds.
Source: CNN
