Monday, March 16, 2009

Investment Banking Bonus Matrix: AIG Edition

In my post about AIG's bonuses and backdoor bailouts I got the following comment from 罗臻:

I don't understand why people blame AIG. Instead of letting it fail and getting rid of all the executives, bonuses, and most employees, the government saved AIG and now it is a continuing business. Paying bonuses is what businesses have to do to retain their workers.
"Have to do"?????? Looks like it is AGAIN time to whip out the Investment Banking Bonus Matrix (apologies for those sick of seeing this thing... but apparently I haven't shown it enough to get comments like that). Definitely an argument from the bottom right quadrant.