Reply #18: don't sweat ...

[Kalyan]

I don't know why US is sweating for the payment of $170 mn. All of you are just working on your anger. Chill folks! The anger should be directed at more appropriate places:

1. Did anyone notice the duplicity of AIG who published the recipient list of banks that received the bail-out money. $12 BILLION to Goldman Sachs. $100+ bn was given away like christmas gifts to various US & non-US banks. Why no outrage for that?

2. The outrage shouldn't be the $170 mn bonuses for the team that bought AIG to it's knees. The outrage should be WHY THE COMPANY DIDN'T REVEAL THE INFORMATION TILL NOW? The govt should be punished if they didn't ask for this information when bailing out AIG. AIG should be penalized if the govt asked for it and AIG didn't provide the information. If the govt received the information and kept it quiet, then someone in the govt (Obama? Timothy Geithner?) needs to answer the question.

3. Why hasn't the govt adopted laws to keep executive bonuses in check? The govt has various options:
* Provide an absolute upper limit for all companies ($1/10 mn)
* Provide a formula on profitability - after Mark-to-Market (All bonuses given out by the company cannot exceed 10% of that year's PAT)
* No limits on executive bonuses but taxation on bonus at 45% (for yearly amount less than $1 mn) and 55% (for yearly amounts above $ 1 mn)
* Bringing the stocks & options into the bonuses net and/or Taxation on stocks & options (50% of difference between current share price & price at which the stock option is being provided)

4. Re-evaluate country-wide laws (to examine if companies can pay bonuses if they are bankrupt/loss-making) that supersede these kind of contracts

If you think i am advocating higher regulation, then DAMN correct, i am. Taxpayer money has been wasted by Congress & Wall Street for way too long.