Wednesday, March 25, 2009

I Don't Work In AIG Crap: Redux

From Paul Kedrosky:

"Dear A.I.G., I Quit

By Paul Kedrosky
· Wednesday, March 25, 2009 · ShareThis

An AIG exec's resignation note pops up in the NYT today:

It is with deep regret that I submit my notice of resignation from A.I.G. Financial Products. I hope you take the time to read this entire letter. Before describing the details of my decision, I want to offer some context:

I am proud of everything I have done for the commodity and equity divisions of A.I.G.-F.P. I was in no way involved in — or responsible for — the credit default swap transactions that have hamstrung A.I.G. Nor were more than a handful of the 400 current employees of A.I.G.-F.P. Most of those responsible have left the company and have conspicuously escaped the public outrage.

After 12 months of hard work dismantling the company — during which A.I.G. reassured us many times we would be rewarded in March 2009 — we in the financial products unit have been betrayed by A.I.G. and are being unfairly persecuted by elected officials. In response to this, I will now leave the company and donate my entire post-tax retention payment to those suffering from the global economic downturn. My intent is to keep none of the money myself.

More here.

Is he sympathetic? Somewhat, even if the letter feels like it was written with being leaked in mind."


Back in October, I did a post about this, just as food for thought:

Wednesday, October 29, 2008

I Don't Work In AIG Crap
I want to do a little thought experiment, just as food for thought. Let me begin by saying that:
1) I'm no fan of AIG
2) I don't support TARP
3) I don't support outrageous salaries

Just follow me:

AIG, just for fun, has two parts of its business:
1) AIG insurance
2) AIG crap

AIG insurance makes money and is still solvent, while AIG crap has forced us into, well, you get it.
Now, I, Don, work for AIG insurance, and the boss comes to me and says, "Don, you've done a fine job making us money, but Joe Horse's Arse over in crap has made a pig's breakfast of things, so you're going to have to take a hit for the team".

Now, I, Don, can:
A. Take a hit for the team, because I enjoy my job, the team, etc.
B. Say that I've managed to make money for AIG through a financial maelstrom and I deserve a bonus, and if I don't get one, maybe another insurer would appreciate me more.

So, attacking AIG is fine about compensation, but you do have to look into the facts of that compensation

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