Abstract
The paper outlines how CEO Edward Liddy was placed at the head of AIG when it received $153 billion in capital loans and financial injections. The paper then reveals that, after the government bailout, AIG paid year-end performance bonuses in the amount of $165 million to its employees. The paper discusses how these bonuses represented mismanagement, greed and arrogance to most Americans. The paper considers the arguments of proponents of the bonuses and then offers two recommendations to CEO Liddy with respect to external communications. The paper explains why Liddy should not be too concerned about employee morale and the poor performance of workers.

From the Paper
"The current economic crisis was precipitated by the collapsed of the subprime mortgage market. When the housing bubble burst, home values began to stagnate. Many subprime borrowers had not only taken out loans that they could not afford to service, but they had signed on for interest rate schemes that resulted in their rates stepping up dramatically after the first couple of years. The result was that these individuals could not make payments on the new rates and with the market collapsed they could not sell their homes either. The result was defaults on a massive scale."

Tags:taxpayers, morale, employees, mismanagement, greed

Abstract
This paper discusses bonus packages and what they consist of, their advantages and disadvantages, tax implications, and alternatives.

From the Paper
"One of the human resources department's functions is to work out compensation and benefits for the company's employees. Base pay is of course part of this, but in many companies, bonuses are also provided. A bonus can be either a monetary award and/or a package that includes money and other benefits such as extra paid leave or gifts. A bonus package can be awarded based on achieving certain corporate goals such as a certain percentage or number of sales. In other cases, bonuses..."

Tags:bonus, bonus package, HR, human resources, advantages, disadvantages, tax, flexible

Abstract
This paper describes in detail discount certificates and bonus certificates. It provides some general information and features of certificates and discusses the engineering and financing of the certificates. The paper then examines the advantages and risks of using these certificates and it then provides a practical example to explain the concept.

Table of Contents:
List of Tables
List of Abbreviations
Introduction
Discount Certificates
General Information
Discounts
Caps
Engineering
Advantages and Risks
Example
Key Figures
Interpretations
Explanations
Bonus Certificates
General Information
Bonus
Barrier
Engineering and Finance
Advantages and Risks
Example
Key Figures
Interpretations
Explanations
Summary and Conclusions

From the Paper
"Both certificate types are constructed on the basis of an underlying value and some kind of option to finance the mentioned securities as well as benefits. Certificates are sold like share at the stock exchanges in Frankfurt and Stuttgart, as well as through direct trade. Emitter like ABN AMRO sets everyday prices for the products to give liquidity for trade to the investors. There are two different prices offered, the bid and the ask price. The spread in between will finally be the profit for the emitter. Furthermore they make profit through the time value of put options. Offering certificates bears nearly no risk for the emitter. Discount certificates are based on an adverse development that equilibrates any development in the market."

Tags:engineering, financing, investments, profits

Abstract
Employers are constantly looking for ways to attract qualified employees, and bonus plans have been a driving force in the business world. In recent years, the consequences of such plans have been carefully scrutinized. This paper examines some of the consequences that companies face when they make a decision to implement bonus plans. The discussion focuses on steps that can be taken to avoid the negative consequences of bonus plans, which include animosity among workers, lower productivity, and poor employee loyalty.

From the Paper
"The article, "Bonus Plans: Why Most fail" explains that one of the best ways to avoid the negative consequences of bonus plans is to simply offer a fair wage. (Porter 2003) The author argues that the consequences associated with bonus plans could be eliminated if employers offered a living wage that is higher than that of similar companies in the same community. (Porter 2003) The author contends that offering a living wage coupled with holding employees accountable for their performance, will create the benefits that a bonus plan offers while avoiding the consequences that bonus plans present. (Porter 2003)"

Tags:incentive, performance

Abstract
This paper addresses the question of whether an organization can identify the compensation strategy that is most effective for it and how it can establish a methodology to ascertain what that compensation strategy might be. The paper includes a completed review of the relevant literature as well as a research design methodology. Finally, the importance of compensation strategies to contemporary organizations is noted and personal reflections of the author's relationship with God are revealed as central to the development of this project.

Outline:
Abstract
Problem Statement
Research Objectives
Literature Review
Importance of Study
Research Design
Budget
Measurement
Reflections

From the Paper
"Compensation strategies typically fall within the functional control of human resources (HR) within most organizations. HR management has become one of the last remaining functional areas of an organization where differentiation can be achieved in the marketplace and where competitors might still be appreciably out performed. The reasons for this revolve around the ubiquitous and relative inexpensive character of technology and technological applications that have levelled the competitive field across all industries. Essentially, no matter where a company is located it can access and deploy the very same technological solutions as any other competitor; thus, organizations have determined, and correctly so, that human resources are a vital source of competitive edge if managed properly. "

Tags:human, resources, competition, methodology

From the Paper
" Compensation and benefits in the workplace are very different for the "baby boomer" generation in comparison to the benefits received by their parents. Parents of baby boomers worked for one company, put in their hours, and received a pay check. The amount of the take-home pay was fairly stable. Job security meant getting a job with a large corporation or government agency. One of the parents, usually the father, was a part of the company team until retirement. The company was an integral part of family life. The place of employment provided a social outlet, promised a secure retirement, and paid for complete medical coverage for the family.

Times have changed. The most significant change in employer/employee relationships is the shift of responsibility from the employer to employee. Across the country, companies are.."

From the Paper
"In 1976, a heavily publicized scandal erupted when it was revealed that Lockheed Corporation had paid a bribe to Japanese Prime Minister Kakuei Tanaka in order to win political support for the sale of Lockheed's L-1011 jetliner to Japan (Jacoby, 1977, pp. 162-165). In the wake of this and other revelations of large payoffs by major U.S. corporations to foreign governments, a unique law was enacted by Congress and signed by President Jimmy Carter: the Foreign Corrupt Practices Act of 1979, which imposed U.S. criminal sanctions against American corporations and executives who paid bribes to foreign officials in foreign countries. Business actions conducted entirely outside the U.S. were thus subjected to American criminal penalties.

The scandals and the reactions to them raised both practical ... "

Abstract
This paper presents a detailed examination of merit pay and merit raises for teachers in the public school systems. The writer explores many aspects on both sides of the issue and concludes that merit raises are a positive idea.

From the Paper
"The Constitution of the United States of America gives all children in the nation a right to a free public education. The teachers who teach within that system are charged with molding and developing the mind and characters of those who represent the future. Today's first grader may become the president someday, while the third grader down the hall might grow up to cure cancer. Teachers have one of the most important jobs in the world when it comes to having an influence on what the future holds. They develop the ideas and desires of millions of students each year who will someday go out into the world and take part in its success of failure."

Tags:free, education, merit, pay, raises, institutions, students, tenure

Abstract
This paper takes a look at the three specific companies of Tyco International Ltd., Bear Stearns and Fannie Mae, stating that all have committed criminal business acts due to the greed of their executives. In the case of Tyco, the company's three top executives, CEO Dennis Kozlowski, CFO Mark Swartz and Chief Legal Counsel Mark Belnick allegedly took loans without receiving approval, sold shares without telling investors, and fixed the company's books by inflating operating income, among other acts. The article next describes Bear Stern's mismanagement as "toxic waste", referring specifically to the largely failing hedge fund the company ran with investor and client money. Lastly, the paper discusses Fanny Mae's over six years of financial fraud. Again the paper concludes that head executive cashed in on millions of personal bonuses, leading the company to years of misstated earnings, merely because of their personal greed.

Outline:
Tyco International Ltd.
Toxic Waste ala Wall Street
Nothing Funny about Fannie Mae

From the Paper
"Pure in simple, what Bear Stearns did was not prudent fiduciary and fiscal responsibility but bloated speculation born out of greed and wanting to make a "fast buck." People trusted them with money - some of them their life savings and hard earned cash - and when the truth of their financial mismanagement came to light, they had the gall to ask for more to bail them out from their own wrong doing. As a result of ethically and morally questionable financial mismanagement, Bear Stearns of Wall Street redefined the term toxic waste in money matters considering when they ask people for their money in the first place, they were selling them s--t and when the caca hit the fun, they hide behind obtuse and highly technical mumbo-jumbo that aims only to save their own hides at the cost of the investors. The way Bear Stearns acted is like a thief caught in one's home and the thief asking the victim for bail money."

Tags:operations, greed, executives, mismanagement, bonuses, income

Abstract
In this article, the writer looks at the ethical elements of the discussion regarding bonuses and compensation for the CEO of an organization. The writer maintains that it is ethical for CEO's to receive large compensation packages, but only if it is inclusive of benefits for all stakeholders, not at the expense of them. The writer notes that the best way to do this is through long-term compensation packages that focus on long-term commitment and vision. The writer discusses that these packages must also focus on long-term profitability and growth for the organization, job security for employees, and return on investment for shareholders and other investors. The writer concludes that ultimately, CEO compensation should realistically follow measurable performance that benefits all stakeholders, not just a few.

From the Paper
"The argument designating increasing CEO pay and decreasing shareholder value as unethical is an easy one to make. There is, however, a case to be made on the other side of the issue. Some argue that increasing CEO compensation is a simple matter of supply and demand and is driven by market forces. Others argue that the transition costs of replacing a CEO could be considerably more than the bonuses they receive. Yet another argument is that market fluctuations are inevitable and increasing bonuses are needed to retain top talent and that the investment will pay off over time. Eamonn Walsh goes as far to say that some CEO's are actually underpaid when comparing CEO compensation to stock value. It should be noted that this article focuses on the European market were CEO compensation is generally lower than in the United States. Research has shown that organizations in which their CEO's are compensated in the top 10% have an 80% percent chance of their stock outperforming their peers. Of this group the gains in market capitalization far exceeded the CEO compensation package about 80 percent of the time. On the other hand, organizations offering the lowest compensation had only a 50-50 chance of outperforming their peers."

Tags:pay, costs, bonuses, stakeholder