Jake DeSantis: A Defense of AIG Bonuses

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If you not have to PAY TAXES, then you don't have a clue. What about Earned Income Credit, Foodstamps, Welfare, Free Insurance and I could go on???? This is also taxPAYER money. I would rather someone receive it who WORKED for it instead of some dead beat spending my money on beer, cigarettes and drugs while receiving everything for free. If you don't pay taxes, (by pay I mean when you file your taxes you DO NOT GET IT ALL BACK AND THEN SOME) then keep your opinions to yourself! It's not your money that they are using! In fact, this man has been working to support YOU for years. So just say Thank You and be on your way!

Cindy of TN 11:50PM March 26, 2009

I love the comments from people saying the bonuses were "obscene" or "indecent" or other such nonsense. What would you do? What if you were asked to give back the bonus you were promised? How many of you are part of a union and fight and scrape to get every penny that you think you "deserve"?
We are all hypocrites. We shout at the AIG execs to give back the money but if it was our company and our money we would all be shouting back "You don't understand! I'm different."
Ask yourselves honestly, are you upset about the bonuses paid to AIG execs or the lack of bonuses paid to you?
Now I'll go back to work at my $38,000/year job where I haven't gotten a bonus yet still seem to be happy and content.

Aaron O. of OH 7:06PM March 26, 2009

I read the resignation letter, and wonder what I myself would do if I were in any of their shoes ( those that received the bonuses and are now being asked to give it back). I only hope I would have the economic certainty Mr. DeSantis seems to have for his family. I trust that this economic meltdown or shift will pass but only if we all can do the right thing. Thank you for doing the right thing even though it seems unfair to you Mr.DeSantis. There are many hard working individuals, families and others who suffered economically long before it became more common.
It appears to me that only when people at the higher end of the economic ladder are affected do we want to change things. The working poor and elderly have suffered tremendously over the past decade with increases in healthcare, food, and transportation just to name a few. Having been a teacher and counselor for several years I ofter asked where our priorities are when someone who takes care of children or rescues us from fires, or risks their lives in war -- has to earn meager wages as an expectation from the public, but atheletes and those that entertain us or serve in a lesser capacity are paid so much. It's too bad we had to have this type of spiral to see the writing on the wall maybe now we can focus on what's more meaningful. I look forward to seeing more people who have more give more as they can.
If you are looking for list of individuals to help or donate to contact any unemployment office or social service office or chamber of commmerce with small businesses and there will be any number of people or groups, go to a shelter or the tents that many now live in because of their job loss, keeping in mind that they loss their only source of income and job -- which covered thier housing, food, and clothing many with little left over to save and have no where else to turn too since the banks got bailed out. I wonder whose idea that was and why our elected representatives think that buying those bad assets will get banks to extend more credit, who will they lend to? Many people now have bad credit. Then again who has a steady source of income to pay off a loan -- and are they willing to risk more debt at this time.
It all seems to be a service to the agencies and system that was too greedy to notice how this would affect many over the long-term. Feel free to put me on your list for donations. My business is called Progress Village, and I serve people with diabilities and who are in need of transition, support -- well that could be any number of people during these times. May we all focus on the can do attitude and stay focused on long term, cling closer to your God, family, and support system. If you don't have a support system find one and connect-- It's what will get us through the roughest of times.

Ann of WA 6:34PM March 26, 2009

You think Mr. DeSantis got his bonus from the tax dollars of "families and individuals making less than $40,000.00 dollars a year" l2 look at statistics
The census bureau has published the source of tax receipts for years. The contribution to the aggregate income base of the federal government from families in the tax bracket you are referring to is so small that they could give you ALL your hard earned money back and the federal government would barely even notice. People in Mr. Desantis's tax bracket alone (people who make more then $1 million a year) payed over $160 billion of the $180 billion the government gave to the company by themselves. You didnt bail out anybody, get the hell off your high horse. Start paying some meaningful tax dollars and ill start caring about what you think.

CRAS of MN 6:21PM March 26, 2009

750k after taxes? That must be like 1.2 million, which is just about 10 years worth of income for me, and I'm well paid! He thinks he deserves this because he worked "12, 14 hour days" for a year? If the bonus was 150k, 200k then sure but its just obscene that he thinks he deserves such a huge amount of money.

Bennie of CA 6:09PM March 26, 2009

The American dream is dead, the mob has taken over. It is now considered a social crime against humanity to try hard, get an education, build a loyal client base, or get paid commission.
Pretend I’m an AIG exec. Imagine I stop working hard after earning the allotted "socially acceptable" $250k. This despite the fact that I have 3 advanced degrees from 10 years of college and earnings capacity of 3x that. Who amongst you wants the challenge of calculating the amount of money the government will lose in tax revenue from that. I will get to spend more time with my family. I will even have time to clean my own house (housekeeper gets $20/hour, you’re fired), tend my own lawn (like $75 a week, and this for a couple high school kids, you’re fired), take my kids out of daycare (you’re fired), remodel my house (sorry Mr. contractor, $30 an hour and you’re fired), iron my own shirts (sorry dry cleaner, $5 a shirt? You’re fired), change my own oil & rotate my own tires (Dealership mechanic, $40 an hour, you’re definitely fired), wash my own car (those guys are illegal’s anyway, $10 bucks but you’re fired), pick my own investments and manage my own insurance needs (no more financial planner or insurance agent, you’re fired), I think I’m even going to take a class on using Vista (guess what, Mr. computer repair guy who charges $80 just to look at my PC, you're what? you guessed it, FIRED). Best part is I am getting married soon. McDonalds workers, Applebees workers, bartenders, pizza guy, bus boys, you guys have nothing on my fiance, that’s like $500 a month for me, your ALL fired.
You see, their jobs aren’t that hard, that’s why their all replaceable. You don’t want me to get paid that’s your prerogative, but who exactly is it going to hurt?
The problem with Socialism is that you eventually run out of other people’s money - Margaret Thatcher
Who is John Galt

CRAS of MN 6:06PM March 26, 2009

Jake please look outside your box:
Headlines:
March 25th > 8,900 job cuts ordered to pare NY deficit
March 26th > 5,000 Jobs at IBM to be cut
Reality is that none of these people will receive a bonus they will receive Serverance pay and High Cost Colbra health plan.
I am Not against Bonus Awards given by Corporations to all deserving employees. I am Against Bonus Awards by Corporations to to "any" employee when the Company is losing large ampounts of money and receiving bailouts from the US Tax payers.
My Congrats to you on your stated plan to Donate your untaxed total of your bonus. Maybe some of the NYers or IBMers would be worthy candidates. When your Company fails all who work there should share the pain....Thanks for your time....Good luck in finding your next job.

Tony Kownacki of NY 5:31PM March 26, 2009

Texas needs to learn to read and comprehend what people are actually saying. I will repeat it again for him: "Jake DeSantis is not the only hard working American. Many people who earn the average yearly income have very long hard working days too. I think that Jake should stop whining. I think that you, Mr. Texas, should learn something about economics, as you feel that the the only way of being able to pay for social programs so that we can have a happy society, is paying some people, who think that they work harder then the rest, much more so that they can pay more taxes and then turn our backs on those who have nothing. For your information, there are other ways. Denmark, for instance, has been voted the happiest country in the world for the past 10 years. Do you know how their economy works? I do. Maybe you should understand that there are other ways than huge income disparities between fellow hard-working citizens. By the way, I work in technology and make well over 6 figures a year. I know all about bonuses. "

Renee Rieder of CO 5:22PM March 26, 2009

Again - does anyone REALLY get what "VARIABLE COMPENSATION" and "NON-DISCRETIONARY BONSUS" is really about? Does anyone at AIG deserve such compensation? Where goals met? I DOUBT that -- was the goal of the BOARD and the EXECUTIVE STAFF to have the US taxpayer bail the company?
"Variable pay is employee compensation that changes as compared to salary which is paid in equal proportions throughout the year. Variable pay is used generally to recognize and reward employee contribution toward company productivity, profitability, team work, safety, quality, or some other metric deemed important.
The employee who is awarded variable compensation has gone above and beyond his or her job description to contribute to organization success. Variable pay is awarded in a variety of formats including profit sharing, bonuses, holiday bonus, deferred compensation, cash, and goods and services such as a company-paid trip or a Thanksgiving turkey."
'On the other hand, non-discretionary bonuses are given after the employee meets certain agreed-upon and usually very specific goals or objectives. To be effective, the goals and objectives must be measurable. Because employees know what they need to do to achieve these bonuses, the incentive to work harder and get the job done is in place. Non-discretionary bonuses improve a company’s ability to meet its business goals by encouraging increased efficiency and productivity; they also directly impact future performance.'
If a company is failing or failed and requires a "BAILOUT" does the staff deserve this form of compensation?
Everyone of us, especially our Nominated Representatives from President down, need to pay attention to details here. And do our Nominated Representative deserve all their perks at our expense!!!

Reba of CA 4:56PM March 26, 2009

As I read most of these comments I am amazed at how little most Americans understand about the situation. When a company is in a position such as AIG, retention bonuses are put in place to keep key individuals around. This is the case even in bankruptcy cases, such as the retention bonuses awarded by bankruptcy judges to employees at ENRON. Chances are, if AIG went into bankruptcy, these same individuals would have been paid these retention bonuses. As for the amount - that is the market rate. Most of you may think it is outrageous, but how many of you could do his job? I would say very few of you could do it - if any. I would also like to take a poll and see what most of you do - chances are, many people could do your jobs and therefore you are paid accordingly. That is the workings of a capital market. If you don’t like it – then welcome to Socialism.
The American dream is an incredible thing - people come here from all around the world for the change to experience it - to come from nothing and make something for themselves. And while the dream is there, not everyone is going to make it. But we live in such a great country that we all don't have to 'make it big' to live a very rewarding life. And to think otherwise is ungrateful and ignorant.
I know that American taxpayers are upset about all of this, but do not take that out on your fellow American. There are a few individuals who are to blame, but just because someone worked for a bailed out bank does not make them a villain. He did his job, and worked under the premise that his contract was going to be honored. Bailout money or not, he had a contract and the government knew this and made provisions for it. For the government to now come back and backtrack says more about our government than it does about AIG and their hardworking employees. Think about it - would you want to be guaranteed something and then for the government to come back to rip it away? Look at Cuba if want to see where this action leads.
I ask that you stop making yourselves the victims here and instead look at what you can do. You still live in the best country in the world - stop and think before all of that is changed over the greed of not Wall Street but of Main Street.
And one last thought...all of you who say that 'you paid' for those bonuses...lets be honest. Mr. DeSantis has probably paid in taxes over the last five years what he got as the retention payment from AIG. HE PAID - AND WILL PAY FOR THIS BAILOUT - WAY MORE THAN ANY OF US.

wendy of TX 4:52PM March 26, 2009