ABC News -Even as the company was pleading the federal government for another $40 billion dollars in loans, AIG sent top executives to a secret gathering at a luxury resort in Phoenix last week. Reporters for abc15.com (KNXV) caught the AIG executives on hidden cameras poolside and leaving the spa at the Pointe Hilton Squaw Peak Resort, despite apparent efforts by the company to disguise its involvement. “AIG made significant efforts to disguise the conference, making sure there were no AIG logos or signs anywhere on the property,” KNXV reported. A hotel employee told KNXV reporter Josh Bernstein, “We can’t even say the word [AIG].” A company spokesperson, Nick Ashooh, confirmed AIG instructed the hotel to make sure there were no AIG signs or mention of the company by staff. “We’re trying to avoid confrontation, keep our profile low,” said Ashooh. “Some of our employees have been harassed.”
In addition to the nearly 150 independent financial planners in Phoenix for training and education, the conference attendee list was a Who’s Who of AIG leaders, including Larry Roth, President & CEO, AIG Advisor Group; Art Tambaro, President & CEO, Royal Alliance Associates; Mark Schlafly, President & CEO, FSC Securities; Gary Bender, Senior Vice President, Investment Advisory Services; Bruce Levitus, Senior Vice President, Investment Advisory Services; and Stuart Rogers, Senior Vice President. The three-day event at the resort was also supposed to feature hall of fame football quarterback Terry Bradshaw as a motivational guest speaker, but the company canceled Bradshaw’s appearance shortly before the start of the conference, according to a company spokesperson.According to the Washington Speakers Bureau, which manages Bradshaw’s speaking engagements, he commands a fee of more than $40,000 per appearance.”What do they have to hide,” asked Congressman Elijah Cummings (D-MD) who said he had been promised by AIG CEO Edward Liddy that the company would stop such “junkets.”
“They came to us and said they were drowning and needed help. A person who is drowning doesn’t jump up and start partying,” said Congressman Cummings.
It’s AIGs way to thank the Bush Administration.
They are blowing it big time managing the press on this. I earn my living doing these shows and I can tell you that the budgets, even for a big show, or a small one at a swanky resort, pale in comparison to the money these guys burned buying loans which they should have known would not be paid if there was a downturn in real estate.
A big show in Vegas or San Francisco runs about $500,00 for production, transportation, and rooms and food for 5,000 people for 5 days. Ya, they could go up to a million if they book The Eagles or someone like that for entertainment. A small show at The Montage or some swanky place may only run $250,000 total. The other little detail here is that most of these events are planned many months or years in advance. The contracts they have with hotels and convention centers would result in 100% payment for cancellations. So, they’d be spending the money either way.
These numbers are a drop in the bucket compared to the waste in big business. Large companies have to get people together regularly and, even if they do it ‘on campus,’ there will still be costs. The problem is they are making themselves look bad by hiding from the press. Image being everything and all.
They’ve got good taste in resorts, that’s for sure.
Im waiting for some Disgruntled medical Patient/mortgage holder to THINK ahead..
And cover the Locations for vacations and Large meetings..
Business as usual I see.
#2. So they lose the money if they cancel. So what? I’m willing to bet that they have adequate board rooms and meeting rooms at their own facilities if they need to get together. Those coming in from out of town can be booked at the Best Western or Holiday Inn for $100 a night.
But you got the part about the waste in big business right. The ONLY thing worse is of course, government.
#5 – “But you got the part about the waste in big business right. The ONLY thing worse is of course, government.”
And yet, the Obamatards want to replace the waste of big business with the waste of big government. This is change? Where is the hope?
#2 – geofgibson
They may get charged for the cancellation but like #5 Dave W said, so what?
It’s somewhat like putting a cruise on my credit card before I file for bankruptcy. I already paid so may as well go? Except in this case, it’s not the credit card company getting stiffed, it’s us the taxpayers.
Obviously they don’t care. But maybe they did try right? Maybe they called the resort and tried to renegotiate, looked at how much not spending on airfare, ground transportation and souvenirs would not be better than the PR hit.
Hats off to the person who tipped off the TV station. We need more of that!
They should hold their pow-wows in Detroit. If AIG is going to be blowing tax dollars on this crap, then at least use it where it is needed most.
These executives are the people that Republicans say “create the jobs” and “create the wealth” in the country.
In reality, of course, these people don’t do a fricking thing. All they *do* is go to junkets for themselves and take vacations. They are parasites on the labor that actually creates the goods and services that produce wealth in this country.
i FIND IT INTERESTING THAT:
Compare the LOWER end workers and wages that get SHIPPEd to Other countries…
to THOSE in the HIGHER wages, that could be SENT to the other countries and SAVE MORE..
Lets say you ship the lower workers JOB..
HERE they get $10-20 per hour..in the other country they PROBABLY get $2-5. So a Cut of 5 to 1.
SEND the CEO job over seas, the they get 10 to 1 SAVINGS..MAYBE even 100 to 1..