Thursday, March 12, 2009

bonus – noun

A retainer paid to an employee to avoid having to replace him with someone even more incompetent.

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 remonstrations 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.

—From a letter by AIG CEO Edward Liddy to Treasury Secretary Timothy Geithner

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