The always useful TPM remembers that AIG wasn’t always so eager to pay its employee’s bonuses:
AIG was being sued for breach of contract by a former employee, Rob Feilbogen. Feilbogen claimed that when the unit he worked for, AIG Trading, was put under the control of Cassano’s AIG Financial Products, he was informed in writing by an AIGFP executive that the company’s previous guarantee to pay him a bonus of $1.3 million would no longer be operative. Feilbogen said he was told he would still be eligible for a bonus, but the $1.3 million figure would not be guaranteed.
In a letter to Cassano, Feilbogen insisted on receiving his $1.3 million bonus. In response, Cassano played hardball, telling Feilbogen he could agree to the new deal, or resign. Feilbogen continued to resist, and was soon informed by an AIGFP lawyer that his employment had been terminated “as a result of his decision to resign.”
The lawsuit was eventually settled out of court. But the case suggests that whatever bonus agreement Feilbogen had, or claimed he had, with AIG, Cassano and his colleagues weren’t inclined to treat it with much respect.
Does anyone have a legitimate argument for why AIG executive’s should be given their bonuses? I’m honestly curious to hear someone make the case with a straight face.