Jack DeSantis, Executive VP of A.I.G. Financial Products (based in the Wilton, CT office), has resigned from the company, and has shared his resignation letter with the world in “The New York Times.” The man has some really good points. I have been fairly vocal about my thoughts on huge bonuses being paid out. My feeling in the past has been that I never had a problem with it. If these behemoth companies could afford to pay bonuses, that was their perogative. However, if a company that has been part of the bail-out program was still paying out these obscene amounts, and using my tax dollars to do it… then I have a problem.
Mr. DeSantis, however, raises some interesting points. Many of these executives were working on the premise that they would only take $1 a year in salary, while the remaining portion of their compensation would be in the form of stocks and bonuses. It ws with good faith that they signed their contracts. And, as is the case with Mr. DeSantis, a lot of these executives that had nothing to do with the company failing, are now being asked to give the money back.
My dilemma is that I believe in principle that a contract should be honored. But the fact that it is that it is now my tax dollars instead of the company’s profits being paid out. I’m struggling to pay my rent, let alone my back rent, and put food on my table. I need to keep my car on the road so that I can get back and forth to my $200 a week part-time job. Mr. DeSantis clearly states in his letter that his family will not suffer at all financially.
On the positive side, and I commend Jack DeSantis for this, he will be donating his entire bonus of over $700,000 to charity. Jack… drop me a note and I’ll tell you my address so that you can send just a tiny portion of that bonus to me.
Read the resignation letter here .