90 % tax on AIG bonuses

Dan D · 03-20-09, 08:26 AM

What I don't understand is why are bonuses paid when the company does not realise any profit or even worse when the company would have gone bankrupt without government help.

From what do you want to pay bonuses if there is no profit?

And imo it makes sense that companies that have received bail out money should not pay bonuses to their managers.

"No profit, no bonus" should have been written into these bonus contracts, imo.

But I am no expert, so please enlighten me.

03-20-09, 08:26 AM	#5
Dan D Grey Wolf Join Date: Jul 2002 Location: 9th Flotilla Posts: 839 Downloads: 0 Uploads: 0	What I don't understand is why are bonuses paid when the company does not realise any profit or even worse when the company would have gone bankrupt without government help. From what do you want to pay bonuses if there is no profit? And imo it makes sense that companies that have received bail out money should not pay bonuses to their managers. "No profit, no bonus" should have been written into these bonus contracts, imo. But I am no expert, so please enlighten me.