Six days after being saved from bankruptcy, thanks to an $85 billion fresh cash injection, the executives of the insurance company AIG went celebrating in a luxury hotel for just around $440,000. Long live the crisis!
$200,000 for the rooms, $150,000 for the meals and $23,000 for the spa, Jacuzzi and other relaxing services. This is how much AIG spent for the organization of an internal seminar in a luxurious West Coast spa-hotel. Gosh! They needed it to relieve themselves from their near-bankruptcy stress! Unveiled by Democratic Sen. Henry Waxman during the opening of the auditions of the company’s executive staff, the $440,000 bill (published by the Washington Post) was for a one-week seminar occurring between Sept. 22 and 30. This was only six days after 85.5 percent of the company’s capital was acquired for $85 billion of public dollars.
To celebrate a $5 billion dollar deficit!
The reservation was made in the end of 2007 and less than a dozen executives benefited from these $1,600-a-night rooms. Situated high on a bluff overlooking the majestic Pacific Ocean, stands a landmark resort of legendary proportions, claims the web site of the hotel: the St. Regis Resort, Monarch Beach, located midway between Los Angeles and San Diego. According to AIG’s spokesperson, It is an established custom aimed at rewarding the company’s best salespersons.
Arguing so is questionable as recent activity reports depict how adventurous placements caused some $5 billion losses in the last quarter of 2007. Does this indeed deserve a weeklong luxury vacation? AIG is not a novice at such practices: in spite of the company’s disastrous financial performance, its CEO, Martin Sullivan, benefited from a $5 million bonus followed by a $15 million dollar golden parachute. The $300 billion Paulson plan really made happy fellows!
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