Wednesday, October 08, 2008

The infamous AIG party

AIG logo
This outing was the same type of company outing that other companies fund each year. There were less than a dozen AIG people in attendance.

Unfortunately, due to the timing, the issue has become a a silly media-driven frenzy. Even the White House couldn't resist criticism and CNN keeps saying, "Spa treatments! Spa Treatments!"

If your insurance company has a business model of selling through independent reps, it does the same thing to reward and motivate them (Note: they are not employees).

These events are planned months or years in advance. It has nothing to do with the loan program -- it wasn't even funded by the holding company. It is...a cost of doing business. Would you prefer that AIG shut down it's incentives for independent sales agents? Should AIG stop selling insurance?

Which AIG executives should be fired? Should they fire all of the independent reps too?

Disclaimer: I own shares of AIG. (But even if I did not, my reaction to this storm would be the same.)

I did not like the bailout. However, I reject some of this populist furor because it has painted the AIG event with the same brush used to condemn the Dennis Kozlowski Toga bash and his golden shower curtain.