Even the ones for the bankers forced by Paulson to take the TARP money?

What Congress Can Do To Stop The AIG Bonuses – The Atlantic Politics Channel

That’s one way to get the banks to pay back.  It’s also another way to move people from banks to hedge funds. 

Oh boy the hedge fund guys must be happy.  The survivors are going to be really rich, because they are going to run the next I-banking business.

And all this bonus pay is ‘tax driven’ anyway:

It is worth recalling however, as a reader wrote me today, that we have been here before. The Clinton Administration in its 1993 tax law change wanted to cap the amount of executive pay that could be deducted against income taxes. My correspondent writes:

There was also a loophole, a provision that said that Bonus Compensation was taxed differently than standard compensation. Bonus compensation under those provisions is fully deductible. That was the year when people like Michael Eisner of Disney got large bonuses for performance. Over time, Executive Compensation was shifted from Salary to Bonuses, and such provisions were written into Executive Contracts and those of other high performing employees. Presumably “Bonus Compensation” was to be tied to performance or certainly used as an incentive to get a star performer to move into a failing area of the business to help “right the ship”. Another point that is sometimes missed is that compensating someone with a bonus is being more responsible to the shareholders because this allows the company to structure its tote sheet in a way to reduce the overall corporate tax burden.

Now fast forward to the “Banking Crisis” and “Bailout Packages” and we have a sudden attack on “Bonus Payouts”. People who apparently don’t understand how business works or how to get top level performers to stick their careers out on the line are attacking people who get such rewards.

quoted from:SCSUScholars: What happened last time

I am not a supporter of the bonuses to AIG, but all the current political posturing is a bit rich. 

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