The AIG Retention Contract

By Marc Ambinder

Check it out -- the House Financial Services Committee released the 2008 AIG Financal Services division employee retention plan.  employeeretentionplan.pdf.  According to the document, the goal is to "provide incentives" for employees to "continue developing, promoting and executing" the business and to "recognize the uncertainty that the unrealized market valuation losses in AIGFP's super senior credit derivative and originally-rated AAA cash CDO portfolios have created for AIG-FP's employees and consultants." In other words -- the poor performance shouldn't adversely affect the bottom lines of the derivative traders.

This article available online at:

http://www.theatlantic.com/politics/archive/2009/03/the-aig-retention-contract/1618/