Companies bailed out by the govn't caught paying out bonuses?!?! seriously?!?!?!

[CaboBride2010]

Ok so this is a vent for sure.

 

After obviously everyone seeing how badly both Canada and the US are sinking in this recession and jobs being lost because of lack of money to spend on wages how on earth how do companies feel justified spending money paying bonuses to their executives?!?!!? that just boils my blood that people who are struggling to survive without their jobs since being laid off are now finding out the the top people in their companies aren't taking a pay cut at all and they are still receiving full bonuses!!!!

 

Obama just banned AIG from paying out an estimated $160 MILLION IN BONUSES!!! because he said the government just bailed them out and there is no way that money will be spent so foolishly!!

 

Sorry for the random vent, I am just wondering how will both Canada and the US get out of the recession if the CEOs of companies can't seem to learn how to manage their companies better Everyone in our world seems to only care about having money today but not worry about the future which is so worrysome!

 

My question that I have no idea how to get an answer or if there ever will be one is HOW are we supposed to get out of such a huge recession if no one seems to want to change their habits and take cuts in pay??

 

Ok rant over.

Just I hope from this the government won't just bail out companies so easily since the companies don't seem to use the money for the purpose it was given!!

[Nic Dragomire]

the only way to get outta this thing is to let the the companies that are not responsible FAIL. The thing thats worse is that that bonus money is OUR'S ... its taxpayer money

[CaboBride2010]

ya there is much better ways taxpayer money can be spent to end the recession than just handing money freely to failing companies. and you are so right these companies just need to fail and then maybe they will learn that things need to change in order to do well....but im sure that will take a while sadly

[trance_angelx0x]

I hear you sister! I was so peeved when I read this headline on CNN. You get a bonus when the company does well, not when the government needs to bail you out! This is all over the place, there is no regulation for bonuses. Even before the recession, when companies were doing not making profits the CEOs and management would still get huge bonuses even though they did nothing (ie: bring in more profit).

 

Here in Canada yesterday the headline was the top 10 crown corporation salaries. These heads of Crown Corporations are making more money than the Prime Minister and giving themselves raises every year and huge bonuses and at the same time telling the rest of the public servants that they need to accept less pay raises because "times are difficult right now"

 

yah, uhh huh!

[FutureMrsLewis]

I think this is absolutely crazy! There are so many better things that taxpayer's money can be used for! I got laid off last year and even while I was receiving unemployment I put out resume, after resume, after resume, and in less than 3 months I put out over 50 resumes, all while I was in constant contact with HRDC telling them that I needed help because nobody would hire me. I was very fortunate and am now sponsored to return to school, which I am treating as a job. I don't show up late, I don't fart around and waste time, I show up and am very professional, afterall, I've been given a small portion of taxpayers' money to do this! I was only given $20,000 and I'll forever be grateful for them helping me better myself and wouldn't DREAM of wasting even a cent! But to just take HUNDREDS of MILLIONS of dollars and give to people who already live in the lap of luxury? Come on! Help out all these people who just got laid off and help some of them return to school to either re-train in their field and upgrade their education, or help them receive training in a completely different field! This is NOT the time for the rich to get richer and the poor to get poorer!!

[Jacilynda]

Quote:

Originally Posted by CaboBride2010 Obama just banned AIG from paying out an estimated $160 MILLION IN BONUSES!!! because he said the government just bailed them out and there is no way that money will be spent so foolishly!!

Obama didn't actually ban the payout, it's already been paid to the ceos. Some of them felt guilty and actuallypaid some back.

This happened due to language in the stimiulus bill. A last minute adjustment to the language of the bill allowed this. It wasnt specific language saying AIG can keep their bonuses. It was about bonuses in prior contracts, although they didn't think the change in language would make this big of an effect!

I am very proud of our president. Although he was not responsible for the adjustment, he takes responsibility and steps up and says he's the leader and the people working under him are his responsibility and this is his fault.

The house just passed a bill to tax wall street bonuses. Anyone making over $250000 a year will have their bonuses taxed at 90%.
Also the chief exec of AIG has asked the employees who received more than $100,000 in bonuses to return at least half. But he only asked so they don't necessarily have to. It's a greedy world right now.

[CaboBride2010]

Oh wow ok Jacilynda i didnt know that they are now going to tax wall street bonuses. But yes it is a very greedy world right now!

 

And i am also just very peeved that I live in Toronto and our property taxes were just hiked 4% because the city needs to money to support their new budget. This was all fine and well if they really need this money, but just yesterday info was released that showed the Toronto city councillors are spending ridiculous amounts of taxpayers money on work "expenses"!! it is beyond disgusting that some of it went to one councillor because she used her work expense account to get her child French lessons, another councillor was caught buying a computer and another caught buying a GPS for personal reasons. I am sure this happens all the time but the highest amount of money spent in the last year by a councillor was just over $50,000!!!!! it is unacceptable that they spend that much of taxpayer money on top of the over $100,000 a year they recieve in personal salary. How is it right that property taxes being raised will make my personal budget tighter, yet that tax money is paying for a well off persons child to get private French lessons?!

 

Sorry that was my vent for the day. I am just mad that people are losing jobs left right and centre and still our tax money is being spent so foolishly! It is so true that the rich are getting much richer and the poor are sinking so quickly!

[big3n09]

The whole idea of peole just being so damn greedy makes me sick to my stomach cause you can't possibly tell me or show me anything they have done to receive any kind of million dollar bonus. I think about all the people who lost their jobs and homes and these selfish people are sitting around being greedy, it irks the hell out of me. Money is the root of all evil for sure!

[drtracy]

While I don't disagree with what anyone posted I do want to add a different perspective.

 

I have no idea why these people received their bonuses. Yes, I'm peeved that my tax money was used to bail out these companies but, if a year ago my boss told me that if I achieved a certain goal I would receive a bonus I would work my ass off to achieve that goal. Once I did I would expect my bonus. Yes, it would suck if people all over were having problems but is it my fault? If these employees are doing their job why are they getting punished? Punish their bosses that were dumb enough to get the company in this position in the first place.

 

What would you do if your boss promised you a bonus for your good works then everyone demanded that they take it away?

 

This is all just MHO but I have great respect for the employees that gave back their bonuses but don't fault the ones that didn't, I fault their bosses.

[Jacilynda]

Quote:

Originally Posted by drtracy While I don't disagree with what anyone posted I do want to add a different perspective. I have no idea why these people received their bonuses. Yes, I'm peeved that my tax money was used to bail out these companies but, if a year ago my boss told me that if I achieved a certain goal I would receive a bonus I would work my ass off to achieve that goal. Once I did I would expect my bonus. Yes, it would suck if people all over were having problems but is it my fault? If these employees are doing their job why are they getting punished? Punish their bosses that were dumb enough to get the company in this position in the first place. What would you do if your boss promised you a bonus for your good works then everyone demanded that they take it away? This is all just MHO but I have great respect for the employees that gave back their bonuses but don't fault the ones that didn't, I fault their bosses.

I absolutely agree w/ you. This is why the language was changed in the stimulus bill. They thought they would end up losing more money w/ legal fees, cause employees would be suing because this bonus was included in their contract.

Although, lets talk numbers. I agree they were contracted a bonus, but after they bailout, I think they should have discussed renegotiating the amount of these bonuses. The average bonus paid was $395,000!!! That's the average, 51 of them actually received over 1 million, and one exec actually received a 6.4 million dollar bonus!!!

I think these numbers should have been reduced do to them just being bailed out.