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March 26, 2009

Comments

PD

I think this is more prevalent than a lot of people realize.

My company was bought last year. I don't think I was a "must have" like Extraneous, but I guess I was at least a "want to have" because part of my offer letter included bonuses to be paid after one and two years' service. I recently received the first one.

Maybe not a "retention bonus" in the same sense as DeSantis, but yes, these are not uncommon agreements.

And I wouldn't be happy to have the Feds decide to retroactively take 90% instead of the 25% they did take.

Pofarmer

Po-

The Bonus Operandi of AIG-FP is just that, modus operandi of the financial system, as it WAS, of the greater Tri-state area. Call it Pay-to-Play writ large, you make them money, they pay you at year end, when we settle up the accounts.

For them, That is normal. I used to play in that world, and got paid, and NOT paid, the exact same way.

Happier now.

Yeah, I know it's normal, it just ain't right. We've got folks controlling our financial system who can't be trusted at their word. That's sad. Just call me a bumpkin.

MayBee

Bonus Operandi

Love that!

Pofarmer

The deal was made, but you would rip it up like so much trash. I'm not impressed with your grasp of the importance of rule of law.

And now you're bashing this DeSantis guy.

He's calling out upper management for a lack of honesty and commitment.

Are people having reading comprehension problems?

mel

I'm not going to play that game, because it's a different one. That's all. Trusting people is a risk at everything you do, so put down the 4" brush, and trust me in saying it isn't that clean or as simple as you'd like it (and me, for that matter) to be.

I'd rather be throwing 80# bales for six or seven figures, but I haven't quite found the person who's willing to pay me to do that magnificently. How's it going on your end? (See what I mean?, but I do get what you mean, just realize that it's different for other places and people.

Gotta go, night all.

Pofarmer

And it's not just then, either. I was once involved in a sale of a company's division into a joint-venture, and the buyers, a big-revenue company, required that the selling company assure them that a certain set of people wouldn't bolt. I happened to have been one of these "must-haves," and was asked to sign a contract assuring them that I'd stay. In return, they committed to a retention bonus, just to make sure.

I think this is more prevalent than a lot of people realize.

That's awesome for you. Great, in fact.

Had the company just been taken over by the Feds and ingested a HUNDRED BILLION or so taxpayer dollars? While having a CEO seated who, apparently, actually is working for $1?

Pofarmer

Trusting people is a risk at everything you do, so put down the 4" brush, and trust me in saying it isn't that clean or as simple as you'd like it (and me, for that matter) to be.

I think that works both ways in this deal.

Night mel.


Pofarmer

This may be a dead thread now, don't know. But folks need to realize something. It's EASY for me to demonize traders. How many of you folks work in a position where the price of your output and the cost of your inputs are largely out of your control? I mean, you can lock in a range, for a price, but, overall, the prices are set by the big money boys in Chicago who trade in volumes and dollars almost beyond comprehension, with, apparently, no realization that thier actions affect real people. I mean, we're STILL dealing with the hangover from $6 and $7 corn last summer. How? Because input prices followed it up, have largely hung, and now we're dealing with $4 corn, with a good growing season maybe $3 corn. You can take steps to control the risk, but you can't eliminate it. I know glasater was involved in ag, as was mel. Don't get me wrong, it's great lifestyle and a great job, if maybe not the one with the greatest remuneration, but, realize that we're seeing folks from the opposite side of the coin. The big money boys moving around billions of $ on a whim need to be aware that their actions have consequences, besides the size of their bonus. That's probably way too much to ask for.

Extraneus

Well I can understand that, Po, and I wasn't bragging earlier, just trying to add another example that I was familiar with. The thing is, there are different types of bonuses. Most are based on the company's performance. "Make us a lot of money, and we'll share some with you." When the company loses money, these bonuses are reduced or eliminated. This is why they exist, to provide the company this flexibility rather than forcing them to do layoffs every time there's a contraction. This guy's bonus wasn't like this, it was simply a "stay until next year and you get paid; leave and you don't." Just unfair to retroactively change a deal like that, regardless of the company's performance.

bad

Po, Obama used a hang-in-there bonus system with his kids. If they hung in there for two years of campaigning, they'd get a dog.

sbw

This would be a great time to paint a picture in New Yorkers' minds that Cuomo is nothing but a thug.

I painted it in words.

bad

I painted it in words.

I'll bet it's lovely...

Extraneus

Where at, sbw? I just read the last few rs editorials, and didn't see it on your casual blog.

Jane

Well I can understand that, Po, and I wasn't bragging earlier, just trying to add another example that I was familiar with.

Extraneous,

One of my best friends has been in a company that was taken over 3 times in about 3 months. At each new takeover he was named as one of the important people that had to be retained - like you. And each time they sweeten the pot. (If you stay 2 years we will give you 6 bonuses - one every 4 months, each one bigger than the last.)

It makes it very hard to leave, which of course is the point.

sbw

Extraneous, sorry about that. Our editor put it in the wrong category and it wasn't uploaded to the web. I've corrected that.

Since Typhuspad won't accept my link, I've put it LUN [Link Under Name].

Extraneus

Excellent, sbw.

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