AIG bonus outrage has employees living in fear
FAIRFIELD, Conn. — Longtime pillars of the community are now pariahs living in fear, hiding behind locked gates and security guards amid the public outrage over bonuses paid with taxpayer bailout money.
Payouts by American International Group Inc. appear to have put a face on the economic struggles the country faces, and the anger targeting AIG executives living in this ritzy area of Connecticut is palpable. Death threats have been pouring in since the brouhaha broke, the company said, and its workers are taking no chances.
"It's scary," one executive said, speaking on condition of anonymity because he feared retribution. "People are very, very nervous for their security."
The financial products division is in Wilton in Fairfield County, and many of the company's leaders live in large homes on the "Gold Coast," an area known more for golf courses and sweeping views of Long Island Sound than for the police cars that now regularly patrol the well-kept streets.
Corporate officials advised employees in a memo later posted on Gawker.com to avoid wearing the company logo, in an effort to keep from drawing attention. Workers were also urged to travel in pairs at night and park in well-lit areas.
And typifying the preoccupation with the AIG payouts, a busload of activists plans to drive by executives' houses Saturday in an attempt to deliver letters highlighting the strife of ordinary families in the recession and seeking solutions for economic recovery.
AIG said Friday that at least three executives who received bonuses planned to return the money, including James Haas and Doug Poling, both residents of Fairfield County.
"However someone may feel about the appropriateness of the retention payments, there is nothing appropriate about the threats that people have made to and about employees," company spokesman Mark Herr said in a statement. Haas and Poling have not responded to requests for comment from The Associated Press.
The Polings help out charities including a homeless shelter, theaters and a school, according to The Connecticut Post. At the house, a large white Colonial on a cul-de-sac with all the trappings of suburban prosperity — green shutters, a wood-shingled roof and an invisible fence for dogs — a police car pulled up Friday afternoon and talked to a security guard.
Officer Joe Kalson said that he drives by two or three times a day as of late and that other officers patrol the area, as well.
Organizers of the bus protest noted that there are no plans to trespass and that only a small group planned to get off the bus at each stop.
The protest is an attempt to let people suffering from loss of jobs or homes tell their stories directly to AIG executives, said organizer Jon Green, director of Connecticut Working Families, a coalition of labor unions and other groups.
"There is a human cost to the economic meltdown that we're experiencing," Green said.
Security companies in New York say the financial crisis has created brisk business in everything from bomb-sniffing dogs to bodyguards for executives. The firms didn't want to identify the companies for security reasons.
Pat Timlin, president of the Michael Stapleton Associates, which provides dog teams, said some companies are reacting to the negative atmosphere surrounding Wall Street firms.
"These are people used to living private lives, and are now faced with publicity and attention, often negative attention, and they're worried and responding to that," Timlin said.
Tim Horner, the managing director at Kroll Inc. security company, said the financial industry is taking any perceived risk much more seriously. He has seen an increase on the human resources side of security from companies concerned about hostile laid-off employees.
He has also seen more companies reacting to the very public criticism of once very private companies like AIG.
"There are corporations that have been spotlighted as those responsible or whatever, where they weren't before, and it's a concern," he said. "What's going on here is the stress that individuals and corporations are facing, given a downturn economy. The problems are highlighted more during this time."
Horner said AIG seems to be responding prudently to a corporate security risk.
"I'm sure there is not only a perceived risk, but there are probably threatening or harassing e-mails and blog entries all over the place. They're right to cover themselves," he said.
Mar 22, 2009 at 5:16 p.m.
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The big rush to change has led to the big rush to stupidity by our government. Sign on the dotted line but don't read what you're signing. But, can someone explain why we are getting so upset over bonus's? I mean, some of our baseball, football and basketball players get large salaries and in some cases, bonus's for just signing that range in the millions but no one complains. How many of you, if you had the chance, would apply for a job that offered you a bonus, regardless of the dire state of the Union? This is not a defense of the AIG or any other organization that pays outs large bonus's (anyone hear if Fannie and Freddie cancelled the Large Bonus's they were paying out?) but let's use common sense. The real blame belongs on Congress who couldn't wait to throw money away and now it has come back to bite them in the rear and they have no one to blame but themselves.
Mar 22, 2009 at 12:40 p.m.
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The bonuses were known about in the TARP bill passed last year, the only thing in the stimulus bill was a change of FUTURE bonuses. Everybody, GOP, Dems, Obama, Bush, shares the blame on this one.
Mar 22, 2009 at 12:25 p.m.
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It was in the stimulus bill that was written in Nancy Pelosi's damned office! Those bonuses were exempted, limits on those bonuses were exempted. The bonuses were known when they wrote the stimulus bill. It happened in Nancy Pelosi's office, and Barney Frank helped write it. They passed a law, and they sent it to the president, and good old Special Olympics- teleprompter Obama signed the damn thing. Would never have happened, had they not exempted it. It was in the bill, it was in the law, and they act like they got blindsided. They act like somebody pulled a trick on them. I detest these people. If the mob is mad, if the mob is angry -- go ahead and be mad at AIG, if you want, if you want to follow popular sentiment. Or perhaps try to deal with reality and hold accountable those who should have their corrupt feet held to the fire... aka, your lying, cheating government! Wake up, people!
Mar 22, 2009 at 9:52 a.m.
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I just don't get it. The Auto Industry CEOs travel to DC to ask for money, which could delay bankruptcy and huge increases in unemployment, and get railed by Congress for flying in corporate jets. AIG leadership get bonuses in excess of the maintenance and operating cost of those corporate jets, due to a loophole Congress put in the bill, and everyone is asking how could this happen? The solution (sic), print more money and give it to everyone with no strings attached, no questions asked.
I can't wait for the 2010 mid term Congressional Elections.
Mar 22, 2009 at 12:33 a.m.
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Killing any of the AIG people isnt going to do a lick of good. The money would just fall to their family and you'd end up in jail for murder.
It sucks they got the bonuses with that money, but they did. End of story, time to move on.
Mar 21, 2009 at 9:05 p.m.
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yorch the government did not authorize the payment and when it was found that it was paid with tax bailout money it was revealed to the public and congress is trying (I believe) to recoup that money. I read an article where Obama was very upset over this and made it known to the public in more than one statement to the public.
Mar 21, 2009 at 2:34 p.m.
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everyone should be afraid. These "bonuses" are not incentive based bonuses but are contractual and are called bonuses so they fall into a different tax bracket and are not taxed as much as they would normally be taxed.
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Everyone should be scared, because Congress is setting a precedent that you can change an employee's compensation agreement at any time.
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What if your next paycheck was for $1 and the company said they could and there was nothing you could do but walk. Think of the ramifications.
Mar 21, 2009 at 2:33 p.m.
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I found Leno's comments on the taxes to be right on for a rich person who sits on his butt interviewing other rich people. At least Letterman and Ferguson call it like they see it. These people created extremely complex derivatives and then extorted more money by saying they were the only ones who could understand or fix it. I don't blame congress, the treasury or anyone but WALLSTREET and the Wallstreet media(propaganda). Short sellers should be next they destroy companies that actually make something and provide jobs. They gamble that a stock will go down and then pump negative stories into the WallStreet media. If you make money from money it should be taxed accordingly.
Mar 21, 2009 at 2:10 p.m.
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Well, at least we're stimulating the economy by scaring those congress-authorized thieves. The security and locksmith industry in Connecticut and a couple of alarm system manufacturers might not have to lay off people for a while.
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Expanding on Yorch's point, perhaps we should start frightening the Senators and Congressmen at the Federal and State level who have been complicit in allowing this kind of theft and mismanagement to occur. We all might get jobs as private security guards for their homes. Everyone does an 8 hour shift as a rent-a-cop, then takes off their uniform, puts on civilian clothing, a hat and sunglasses and does 4 hours as part of the angry mob outside of the residence they are being paid to guard. ☺
Mar 21, 2009 at 1:43 p.m.
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Fear would be an appropriate reaction.
Mar 21, 2009 at 11:51 a.m.
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I really can't feel sorry for the 'stress' they are going through. I usually don't comment on stories but I couldn't let this one pass by without input. I understand that death threats are not something to take lightly, but if I had enough money to hire bodyguards and hide in my house with the swimming pool, tennis court, and home theater...it wouldn't be so bad. Hell, if I had enough money to buy groceries and get gas in the same week I would be happy. It's time to start using common sense. When did that become uncommon?
Mar 21, 2009 at 11:15 a.m.
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I learned that the bonuses were part of the bailout, meaning that congress had agreed to paid the execs those bonuses with the bailout money. If this is true, then the people should be mad at congress for being irresponsible. Protesters should go after congress, not private citizens. We cannot be ruled by the "rule of the Mob" that is what the Nazi government allowed to happen in Nazi Germany if I'm not mistaken. Comments?
Mar 21, 2009 at 8:16 a.m.
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If you squeeze and tax the peasants enough, they start fighting back. The most dangerous peasants are the ones who have nothing to lose.
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