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AIG Gave Execs Lavish Retreat After Their Bailout

AIG Gave Execs Lavish Retreat After $85 Billion Bailout

One of the visible side effects of the financial crisis has been greater attention on executive greed. A Congressional hearing on the credit crisis is taking a deeper look at the issues, and some digging into insurance giant AIG's habits has divulged some disturbing details.

Just one week after AIG was bailed out by the federal government, its life insurance subsidiary AIG General spent $442,000 on a week long retreat for top sales executives. The retreat took place at St. Regis Resort in Monarch Beach, CA, where the group rested (they spent $200,000 on hotel rooms), wined and dined ($150,000 was spent on food), and relaxed (there were $23,000 in spa charges). Are you wondering what the retreats were like before the bailout? Me, too.

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Bebeshopper Bebeshopper 7 years
I, and a bunch of ladies from another board, just sent an e-mail to AIG telling them exactly what I think of this latest information. It felt pretty good. I kept it professional, yet heart-felt. These people are slime, and I compare them to the Enron folks.
psterling psterling 7 years
And now they're borrowing $37.8 billion from the fed!? UNBELIEVABLE!!!
HeidiMD HeidiMD 7 years
So glad they enjoyed a $442,000 vacation on me (and the rest of America). When I look at my paycheck and see how much money gets taken out on taxes, a luxury AIG retreat in the middle of an economic depression is just what I wanted it to go to.
piper23 piper23 7 years
I'm in the wrong line of work.
thelorax thelorax 7 years
This is infuriating. Everyone who went on that retreat should be personally fined, if not thrown in jail.
CAgirl25 CAgirl25 7 years
"The event, mischaracterized as an “Executive Retreat,” was held by one of AIG’s insurance subsidiaries for independent life insurance agents, not for AIG employees. These agents were top business producers for the company, and of the more than 100 attendees, only 10 were employees of the AIG subsidiary who were there to represent their company. No AIG executives from headquarters attended. The meeting was planned months before the Federal Reserve Bank of New York’s loan to AIG." - Business Wire Hmmmm...... sure..................
GinaSnyder GinaSnyder 7 years
SHAME!
fleurfairy fleurfairy 7 years
They better pay back that money to the U.S. Treasury.
booglass booglass 7 years
Is anyone really surprised? To me it proves that gov't bail outs do nothing to change the corporate culture that lead to a need for bailing out in the first place.
psterling psterling 7 years
So frustrating!
skyrudich skyrudich 7 years
This is one of the most disgusting things I have ever heard of. I've been to that resort and it IS very lavish. I cannot believe that these fools would continue to participate in this retreat. It is an abomination and just a reflection of the priorities of many in this country.
gumdrops334 gumdrops334 7 years
that is just gross...selfish **badword**s. that is not even their money to do that with, that is just sick. maybe that's why they had the problem they had...and obviously aren't trying to fix it
GlowingMoon GlowingMoon 7 years
LOL
scissorz scissorz 7 years
i hate that this was post-bailing out ... how is that even allowed?? i thought that money was supposed to go to rebuilding efforts.
PinkTink707 PinkTink707 7 years
This makes me so angry - yet we all know no one would mind if it was them that was treated to this retreat.
Shopaholichunny Shopaholichunny 7 years
Ridiculous. Disgusting. :irk:
just_kelly just_kelly 7 years
Bastards.
hippiecowgirl hippiecowgirl 7 years
That's just irresponsible. I agree with sgdish that they should keep their words on rewards, but is it really necessary to spend over $400,000 when your company ? I can think of many lovely retreats that wouldn't have cost nearly that much. The government is giving you money to keep your company from completely bottoming out so, in essence, the government (and the American people) paid for that trip.
sgdish sgdish 7 years
This is sickening, however, if the getaway was an incentive type trip won by the sales executives, the company would have been going back on their word to their employees. Trips are often used as bonus incentives for sales reps as their reward for hitting their levels, so it's part of their salary package to some extent. There's always more to the story than were told. We need more information. If this was just a "retreat" type of thing, shame on AIG General for not tightening the belt! Maybe this overspending is why they are in trouble and if not an incentive, some management changes need to be made immediately.
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