AIG subsidiary parties in style in OC, two weeks after bailout

[Subdivisions]

Financial crisis? What financial crisis?

Less than two weeks after Uncle Sam gave American International Group (AIG) an $85 billion loan - staving off financial collapse - execs from one of its insurance subsidiaries, AIG American General, gathered for a conference at the uber-swank St. Regis Monarch Beach Resort, billed as “California’s only Mobil Travel Guide Five-Star Resort,” where ocean-view rooms start at $565 a night and “world class luxury” is the rule.

On Friday, before the presidential debate got under way, caterers for the St. Regis were setting up dozens of tables on the grounds of Mission San Juan Capistrano for AIG American General’s sumptuous off-site dinner. Tables were draped with soft Tuscan-gold tablecloths that cascaded to the grass; elegant fresh flower centerpiece graced each table; and what appeared to be fine crystal stemware, at least from a distance, glistened in the fading light.

Workers set up a lengthy bar stocked with bottles of liquor. A half-dozen tall space heaters stood sentinel in case the evening turned cool. There was a large center stage with lighting and a sound system, and once the sun went down, the whole scene took on a magical patina as tiny white lights twinkled in the trees.

http://taxdollars.freedomblogging.com/2008/10/02/after-federal-bailout-aig-fetes-in-style-in-oc/?ref=patrick.net">MORE >>>

[redqueen]

1. ...

*sigh*

[Marrah_G]

3. It's a deceptive article

please check my post below.

[Marrah_G]

2. This is a bit deceptive. I know exactly what this was.

This was a vacation that independent insurance agents earned by selling X amount of life insurance over an 18 month period.

The trip was planned 2 years ago, the trip is part of the agents compensation for good performance, even to the extent that it is taxed as income.

By canceling it they would have opened themselves up to litigation from the agents who worked hard to earn the trip.

[redqueen]

4. It's still wrong.

If those overpaid salesmen had an ounce of integrity they'd have cancelled or moved it to a less disgusting place.

If those overpaid executives who set it up had an ounce of integrity they'd have done the same.

But Greed is God here. So oh well.

[Subdivisions]

5. . n/t

[Marrah_G]

6. Over paid salesmen?

These guys have worked their asses off. These guys are having a very hard time right now with the middle class hurting. When people are having a hard time paying for food, insurance is the first thing to go.

You are talking about guys making as little as 40,000 (of those making enough to qualify for the trip). Only a few life insurance salesmen out there make over 100k. That might be alot in some places, but I assure you in many places it is not. They pay their own taxes, they work on commission, they have no benefits, etc.

Over paid executives maybe....but not the independent sales force.

[redqueen]

8. So what if they worked hard?

Lots of people work much harder for much less.

But hey... priorities, right?

[Marrah_G]

9. I don't understand your anger

These guys do their job, work hard. They earn a trip that is part of their earned income, they are taxed on it just like income.

Would you give up a couple thousand dollars of your income if a company you worked with was in trouble and got help from the government?

Would you say to that company- oh no, you don't need to pay me what you owe me, I'll take the cut, don't worry about it.?

[redqueen]

11. That's not money to pay a mortgage, or buy food, or any of that.

Framing a stay at a top-notch luxury resort as income is disingenuous IMO.

But yes... I would give up a stay at a luxury resort. In a heartbeat.

[Marrah_G]

13. You don't understand. It is PART of their income.

It is what they earn for keeping the majority of their business with one company.

If they gave it up they would be giving up part of their income. That income comes in the form of a vacation and is often the only one they take.

I think you are COMPLETELY misunderstanding what these trips are.

Say agent makes 60,000 a year, not as an employee, but as an independent contractor. No benefits, must buy their own insurance, etc. The trip is say 3000 of that taxed income. You are asking that the agent give up that 3,000 because AIG was in trouble. yes it is in the form of a trip. That vacation is often the only one the agent and their spouse will take.

This is part of the agent's contract with the insurance company.

[redqueen]

14. I do understand.

I've worked in payroll... I know how these compensation packages get spread around.

And sorry, but my heart doesn't exactly bleed for anyone not able to take advantage of their yearly vacation to a top-notch luxury resort.

[Marrah_G]

15. Well that is your opinion.

1) it is a vacation they earned

2) it is not yearly


This is the last time I will respond to you on this topic because it seems we are both pretty dug in on our viewpoints and it really isn't going anywhere.

:hi:

[zeos3]

10. You're right

It's tougher then people would think, especially being an independent agent. There's no real safety net since pay is all based on commission. The paychecks can vary greatly from month to month and if enough people decide to cut back, like you said earlier, the insurance is usually the first to go. You can find yourself in quite a bind, especially if the commissions get reversed.

[Marrah_G]

12. Exactly. Often these trips are the only vacation an agent will take.

They come every 18 months or so. If they sell 135,000ish (depending on the company) in annual premium over an 18 month period they get invited to the conference. It's part of their income and it is why they will concentrate their business with one company rather then spreading it out. The insurance company gets the bulk of their business and in return if they perform well, they get to go on a trip.

It is a tough job, income is never guaranteed and there are no benefits. If a policy is canceled the commissions get reversed.

The anger towards these guys is confusing as hell.

[ixion]

7. well, I'm so glad we could bail them out... champagne and caviar for

the execs!!