AIG Partied At The St. Regis Monarch Beach
The House of Representative's Committee on Oversight and Government Reform is holding a hearing on the decline of American International Group (AIG) and they have revealed some stories of lavish spending. In fact, Businessweek reports that just days after the New York Fed gave the company and $85 billion handout, $443,343.71 was spent on a subsidiary's executive retreat at the St. Regis Resort Monarch Beach in Dana Point, California. The bills for the event included nearly $7,000 in golf fees and $23,280 in spa treatments. USA Today quotes Rep. Elijah Cummings, D-Md. who told the committee that AIG spent $200,000 for hotel rooms, and almost $150,000 for catered banquets. Given the current economic crisis this revelation doesn't sit well with many people.UPDATE: Given the attention to the outrage generated by the story of this retreat, ABC News reports that AIG has canceled a second one which was to be held at the Ritz-Carlton in Half Moon Bay.
Reader Comments (Page 1 of 1)
Cindy Oct 9th 2008 5:49PM
Looks like they played golf at a local club down the road from Monarch Beach and charged their golf to a master event account. They skipped town and never settled up. They stuck the club with a $2500 bill. Not much compared to charges at St. Regis but some more $$ to add to their spending spree. I have receipts to proove.
Austin Chu Oct 8th 2008 3:06PM
I don't even know what to say. I've been following the bailout on savvywallet, and hearing this news today totally bummed me out. I almost thought American Companies would finally start taking some responsibility. Turns out, we trusted the companies too much. If they wanted a retreat, they should have went to Best Western. Shame on them.
beenthere Oct 8th 2008 4:44PM
this place is beautiful and sooo classy... good choice AIG!
Michael Oct 10th 2008 12:30PM
Fantastic resort. They did nothing wrong but host the event and they are getting ctitized. Stick to the facts this was an incentice trip for deserving sales agents -not AIG executives.
Tony Kondaks Oct 9th 2008 2:22AM
Anyone in the insurance business is familiar with these junkets…and they are completely the opposite of what you were led to believe in the press:
1) they are NOT for AIG executives; they are for independent agents.
2) The independent agents are NOT employees of AIG but are, as the name implies, independent agents who receive 1099’s at the end of the year, NOT 1040’s. In all likelihood, the agents represent 5-10 other insurance companies (assuming they are not captive agents, which is very rare in the insurance industry these days).
3) The St. Regis trip is a common incentive type trip that agents compete for: they have to produce a certain amount of business in a year in order to qualify. Virtually every single insurance company in the United States does it.
4) The trip was probably set up 6-12 months ago. It was an OBLIGATION on the part of AIG to provide these agents with the trip.
5) To renege on this obligation that AIG had towards these independent agents would be TANTAMOUNT TO NOT PAYING THEIR ELECTRICITY BILL.