Jake DeSantis: A Defense of AIG Bonuses

If it were not for the government, he would not have his bonus anyways. Although he has a good reason for defending that he is not responsible for AIG's fall, he agrees that people in his industry are over paid. Taxpayers also have a right to dictate how our money is spent and giving massive bonuses to a culture that thrives on bonuses is not a long term investment for the economy. If AIG paid them with their own money, it would be a different story. This is MY money given to HIM.

Nick of NY 3:10PM March 27, 2009

I have not seen Jake Desantis in a number of years. I worked with him for a number of years and can say that anyone would be hard pressed to find a more loyal, intelligent or down to earth person. For anyone to judge someone like him indirectly is entirely unacceptable. How could anyone have a clue about the job that he or anyone else at AIG had done. Of course, there were a number of people who were paid ridiculous sums and bear responsibility for the firms demise. I can not claim Jake's guilt or innocence nor can anyone else. What I will do is say how disgusting it is that the members of our government could cast judgement on a solid individual like Jake. If anyone should be remitting their pay, it should be the members of the House, Senate, SEC, former Treasury, etc.. It is a dark day in this country when individuals like Jake Desantis are villified and the members of our government and an uninformed public are randomly pointing fingers and throwing stones.

jason billups of IL 10:46AM March 27, 2009

Many who have commented fail to grasp the situation.

This guy IS a hard working guy who made money for his company. His actions and work have nothing to do with our economic problems.

His analogy is correct, the house we were building was burned down by the electricians and we are trying to avoid paying the contracts of all of the other craftsmen who did their jobs.

He is helping keep AIG headed in the right direction. He could have left at any time and found another high paying job. He earns $1.00 per year plus his bonus. It isn't like my pay structure but that doesn't make it wrong.

We already struggle to find good people to work in government. Our hysterical behavior is going to make it harder to find people to work in crucial industries. The guy did graduate from MIT, I'm sure he can find a job far away from all of this silliness.

We'll look back at this like we look back at the Witch Hunts and McCarthyism. Sigh.

Michael Gove of PA 9:42AM March 27, 2009

Does anyone actually believe that the sole compensation that Jake DeSantis received was the $1 per year? Anyone? Ok, how many think that the buck and the promised "retention bonus" (which he was apparently pressured to return) was the only compensation that Jake DeSantis got?

If that was true, it would violate a host of laws--federal and state minimum wage laws, the federal FLSA, and so on.

When Lee Iacocca pulled this dollar-a-year salary stunt in the '70's, the rest of his "salary" was being converted to restricted stock. And, in addition to that, Iacocca was also getting large stock options that he was eventually able to cash in for a $46,000,000 payday.

What do you think that would translate to today for a saavy executive like Mr. DeSantis? If you read his resignation letter carefully, you saw him mention getting deferred compensation (and complaining the value went down).

Bottom line--the dollar a year thing is a stunt. And, the "retention bonus" was very likely not the only compensation that Mr. DeSantis was promised. Rather, it was likely the icing on a large, undeserved cake.

I don't begrudge Mr. DeSantis for anything that he can earn from a private employer. However, when his company is propped up by tax dollars, I have a right to question how those dollars are used. If Mr. DeSantis doesn't like that, he is welcome to find a new employer--somewhere where The Management will spend more freely.

Rob of IA 9:28AM March 27, 2009