The taxpayers of the United States, thanks to $182.5 billion in bailout aid, currently own 80 percent of the world’s biggest insurance company, the high-finance giant AIG. So who should we taxpayers have sitting on the AIG board to represent our interests?
How about a courageous whistle-blower from inside AIG? Or an academic expert in toxic securities? Or a retired general who knows how to rebuild teamwork in a shattered organization?
Try “none of the above.” Last week, the three federal trustees overseeing AIG "elected" to the AIG board six careerists from the same corporate culture of compensation excess that sunk AIG in the first place, including three former CEOs — from American Express, Sears, and Northwest Airlines.
Interestingly, we can see almost the same exact dynamic across the pond in the UK where British taxpayers now own 70 percent of banking colossus RBS.
Last Monday, the UK trustee for this stake declared he has no problems with the just announced $15.8 million pay plan for the new RBS chief exec. Explained trustee John Kingman, a former top aide to the CEO of BP oil: "We could pay civil service salaries, but I don’t think that would be a sensible gamble to take."
Good point, John. Somebody paid like a "civil servant" might do something really reckless, like melt down the global economy.
Sam Pizzigati edits Too Much, the online weekly on excess and inequality.