AIG Spa Trip: Wait, That's Our Money!

Someone should seriously face some repercussions over this! What's sad is how many people are losing their jobs and these guys get to celebrate! The whole thing just makes me sick. I agree with Mike someone should face some jail time.

Jackie of TN 5:29PM October 10, 2008

How dare AIG honor their compensation contracts with these Independent Insurance Agents who are writing life insurance--one of the most profitable products of any insurance product on the market! <grin> <irony> <sarcasm>

The trip was for the agents--not executives as was falsely reported by Henry Waxman (D) Congressman from California. So now because of Henry Waxman and similar Congressmen, a second trip to Half Moon Bay has been cancelled and the agents will not recieve the compensation promised. Guess what these agents will do--they will take their business away from AIG to another company that will compensate them well.

So now AIG will have no business to pay the taxpayers back. Way to go Congress! That's why they are in Congress instead of having a real job where they add something productive to society! That is why the economy collapsed--they passed legislation requiring banks to write non-qualifying mortgages to the underpriviledged who can't afford to repay the mortgages.

Life insurance agents are a rare talent--most people cannot sell an "intangible" product, so those who are the top sellers are rewarded with trips to resorts as part of their compensation (the agents do pay a high rate of income tax on these trips, also). These agents are not employees, they are the "best-of-the-best" independent insurance agents who have the choice to sell for the company who compensates them best.

If you think life insurance sales is just a "job" then go get one of those jobs and you will probably quadruple (or more) your annual income. But if you don't have the "talent to sell intangibles", I guess you will probably argue that these agents should not be paid anything--after all, they should just sell because it is the humanitarian thing to do.

A very good insurance salesman can make more than most executives in the company. That is how valuable they are to the company. But most insurance salesmen aren't good enough to make top dollar, so the compensation has to be high enough to make it worth their time to sell. Without the sales an insurance company has no money to operate.

So, let's intimidate AIG so they will stop the compensation while we righteously watch AIG waste away to nothing. That will be the wisest use of taxpayer's money.

Phil of GA 11:45AM October 09, 2008

Sales people trying to sell an AIG policy will not have a great year ahead if they feel the company is going down hill.

They are the engine of the company....

A sales trip should be done for the hard working people selling AIG insurance and exceeding performance of thousands of others...... Would you want to do it now? I would not.

The compensation of executives if based on stock will evaporate somewhat anyway.

AIG seems like a good company that was convinced to buy bad paper in a bad market.. that is the problem with the company now... it appears. Sullivan appeared honest and decent. The fallout is terrible...and they are not to blame... they should cut back now that this has happened.

Tracy of NY 10:10AM October 09, 2008

There may be enough morality left in Washington to hold hearings, but one never hears of anyone held accountable these days, whether it be all the fraud in Iraq, or illegal immigration. We'll have hearings on the financial crisis, but no accountability.

Luther of IL 10:43PM October 08, 2008