Thread: AIG Execs blow $440,000 of Bailout cash

Page 2 of 2 FirstFirst 12
Results 11 to 12 of 12
  1. #11  
    Senior Member marinejcksn's Avatar
    Join Date
    Jun 2008
    Location
    Penn State
    Posts
    1,820
    Quote Originally Posted by Zeus View Post
    MJ,

    This is nothing unique to AIG or indicative of unsound business practice. Matter of fact it rather sound and widely used in the commission based world of high finance. Hell incentive packages are extremely common in most commission based business. Those incentives of course predicated upon economy of scale. You land a dozen or so multimillion dollar contracts an incentive package of a coupon for a free happy meal at McDonalds just aint going to do. Someone making you a bunch of money without costing you a bunch of money I'm sure you'd want to keep that someone happy so they continue making you bunches of money wouldn't you ?

    No one knows for sure how this economic situation is going to turn out. The govt hasn't given anyone anything as of yet. AIG is on the hook to repay that money and if they don't uncle Sam gets a trillion dollors plus worth of assets for their 46 billion. That's like Me putting up $5,000 worth of collateral if you will buy me a cup of coffee and if I don't repay you for the coffee you keep the 5 grand. Hell I bet you'd go to bed that night praying I renege on the deal.
    My uncle works for Merck, he used to get all kinds of incentives like this and told me how it all works. I dunno, maybe it's just me I just don't understand the point of it. To me I think commission is enough, I wouldn't reward my best salesman for the year who is already making great money with anything more then maybe an award and a banquet dinner celebration, or something like that. Again it's just me personally, I don't see the need for dangling a carrot in front of my nose to get me to work harder.
    "Don't vote. It only encourages the bastards." -PJ O'Roarke
    Reply With Quote  
     

  2. #12  
    Junior Member
    Join Date
    Jun 2008
    Posts
    19
    I'm being paid to do a job. I do that job to the best of my ability with every ounce of strength in my body every day I'm on the job.
    A salesman, especially one who has many different companies products to choose from, is entirely different from most other jobs.

    And while you probably realize this, I didn't state it in my originaly post. The big payoff (beyond agent's pushing AIG policies to qualify for the vacation) comes in the good will generated after the vacation.

    The agent will remember what the company did for him. They spent extra money on him, he made some good contacts and he had a lot of fun. This will provide extra motivation for the agent to push AIG policies in the future.

    Afterall, company XYZ pays a little more upfront commission for each policy sold, but they didn't offer such a great time at a wonderful resort.

    The loyalty this engenders with the agent is priceless.

    P.S.That $400,000 vacation was most likely less then the amount of profit just one of those top agent's brought into the company.
    Last edited by buck; 10-10-2008 at 12:21 PM.
    Reply With Quote  
     

Bookmarks
Bookmarks
Posting Permissions
  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •