Monday, March 16, 2009
Seriously, how many times have we heard this same song and dance about attracting the best and the brightest? A letter from AIG Chairman and CEO Edward Liddy to Secretary Geithner:I would not be doing my job if I did not directly advise you of my grave concern about the long-term consequences of the actions we are taking today. On the one hand, all of us at AIG recognize the environment in which we operate and the remonstration of our President for a more restrained system of compensation for executives. On the other hand, we cannot attract and retain the best and brightest talent to lead and staff the AIG businesses – which are now being operated principally on behalf of the American taxpayers – if employees believe that their compensation is subject to continued and arbitrary adjustment by the U.S. Treasury. RW: Whatever. Liddy doesn't care about the American taxpayer. He should be focusing on the near-term health of AIG (whatever that may mean) before he starts thinking longer term and maintaining the best "talent". It seems to me that AIG is not only too big to fail, but too big to control. That's a problem...a big problem.