Let me see if I get this straight…as the $787 BILLION boondoggle is making it’s way through Congress (you know the one, the bailout of AIG, etc) Democrat Chris Dodd adds the following amendment to the “rules”:
- Crack down on bonuses, retention awards and incentive compensation: Bonuses can only be paid in the form of long-term restricted stock, equal to no greater than 1/3 of total annual compensation, and will vest only when taxpayer funds are repaid. There is an exception for contractually obligated bonuses agreed on before Feb. 11, 2009.
What this means is simple: for any contract written prior to February 11, 2009, their is a legal obligation to pay them.
It turns out the AIG now owes bonuses to the tune of $165 million, they are “contractually obligated” to pay them, as these contracts were written long before the February 11, 2009 deadline.
But…(there’s always a but)
It turns out that the people who voted for Chris Dodd, aren’t happy with said bonuses. How is Senator Dodd wanting to get around this? Tax the recipients of the bonuses.
Never mind the hypocrisy. Never mind the over $50 BILLION that AIG sent to overseas banks.
Not suprisingly, Senator Dodd is unavailable for comment.
A tip of the hat to all who voted for these clowns.