The AIG Clawback: Possibly Unconstitutional, Doubtlessly Imprudent
To that end, the Court has stated that a bill of attainder is any law that inflicts punishment on "named individuals or to easily ascertainable members of a group" without a judicial trial.[2] The punishment may be of a criminal nature, such as imprisonment or death, or it may be civil, such as denying an individual compensation.[3] Full Story »
Posted by Peter L. Combs
There must be some way to reach a reasonable compromise. While I understand the public outcry against bonuses for bailed-out firms, the situation is more complex than it first appears. Many of these deals were made with the government's knowledge; so to arbitrarily retract them just because of public opinion is simply not good business -- leaving aside constitutional legal issues. If we want to retain the best talent to manage these firms, a good way to keep them onboard is to offer them some kind of performance-based incentive -- particularly if it was promised to them when they agreed to stay on. That said, it would seem reasonable to recommend a cap on excessive bonuses (e.g. amounts that exceed $500k), particularly considering that these employees might not have received any bonus at all if the firms had been allowed to fail.