Kosh asked:
Sure, they point to having contracts.
However, if there’s nothing in the contracts saying if you fail the company, you will be let go with no bonus (which would be a stupid contract because ANY contract should have a clause to allow termination in the case of non-performance), can these failures actually be SUED?
They had a certain fiduciary duty to the company and the shareholders. Additionally, once they accepted taxpayer money, they had a fiduciary duty to them as well.
Can the failures not be sued for a failure to perform in this capacity? Have their contracts recinded?
It’s hard to say, without knowing how the contracts were written. A contract COULD be written that someone COULD get drunk in the office all day long and still get paid and it would be legally binding.
What I think this will do for the future, however, is cause contracts to be written a lot more carefully.
If these contracts really have no non-performance clauses, then they were clearly written to protect the execs at all costs. A very very BAD kind of contract for anyone but the executives!
Sadly, this is the dark side of sheer GREED. People need to not allow contracts like this to be written in a publicly held company!
As far as I’m concerned, these people should ALL be terminated at the end of their contracts and new people brought in.
I know this much – I wouldn’t sign a policty with AIG for any money right now.