AIG bonus contracts published

Congressman Barney Frank has released that AIG bonus-for-retention contract. (He's such a bitch.)

Read the contract, after the jump. Steven Davidoff already has. Here's what he says:

These bonuses are payable regardless of performance and are calculated at 100 percent of 2007 compensation for all employees except senior management, who receive 75 percent of 2007 compensation. The amount is payable unless they are fired with good cause, resign without good reason or fail to meet performance standards.

What's good cause?

The agreement states that “’cause’ means conduct involving intentional wrongdoing, fraud, dishonesty, gross negligence, material breach of the AIG Code of Conduct or other policies of AIG-FP or AIG, or conviction of or entry of a plea of guilty or no contest to a criminal offense.”

Similarly, failure to meet performance standards is another hard test to meet. If you could meet this latter standard, the contract provides that the employee still keeps his or her 2008 payments, just not next years. So even if the employee fails to meet performance standards this past year, they still keep the money paid this past weekend.

Davidoff imagines that this language makes for a pretty hard contract to break. If you're like me, you can imagine that there was some "fraud, dishonesty, gross negligence," but I assume that Davidoff things that said fraud, etc., was perpetrated against the US Government and not AIG. I think that a bunch of bullshit.

Any lawyers out there? What do you think?

A.I.G.'s Employee Retention Plan

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