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Bonuses After Bail Out

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Leaders at AIG argued that they were obligated to pay bonuses to executives even after the company was bailed out by the U.S. government because of the company's contracts with these executives. Do you think this is a legitimate argument from an ethical standpoint?

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Solution Summary

This solution discusses the AIG case, and focuses on any legitimate arguments that could be made, from an ethical standpoint. Includes 1 reference.

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Any company bailed out by the government, including AIG, had no right to pay bonuses to their executives. This was one of the biggest problems with the biggest companies that were bailed out, and it created a situation where executives had to repay bonuses that were given to them. The problem with AIG was that once they were bailed out, the ...

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