AIG’s CEO, Robert Benmosche, is reportedly upset and ready to leave his position due to the constraints the government is putting on the company and salaries. Executive pay has been an issue that has fueled anger from many people due to the business-as-usual workings of companies that failed and needed assistance, but there are opposing ideas from the CEOs and the public.
Many CEOs feel they deserve their pay due to them being highly talented and running such a massive institution yet many feel since AIG failed and needed assistance those highly paid individuals didn’t do their job nor live up to their supposed talent.
Benmosche wasn’t the CEO at the time when the bailout was received and AIG has reported increased profits with decreased government aid, so with the restrictions still being levied on AIG many can understand Benmosche’s frustrations.
Should a company that was bailed out by the government and now owes its survival to taxpayers be complaining that the executives aren’t making enough money? There are few companies who fail, receive a resuscitation, and then complain when their savior puts constrains on loose spending. However, AIG has been working toward improving the company’s workings and, again, has reported profits. Is the government too intrusive in this case or should the AIG executives realize they have jobs because of the bailout and stop complaining about not earning enough?
Local businesses have struggled for quite some time while big business continue to flourish. This is something that has been all too common for many decades. It will be very interesting to see how we move forward into 2013. If small businesses continue to decline some feel as if the overall economy will struggle.