There is a Time to Travel: AIG Exhibits Poor Decision

Photo Credit: Starwood

In tough economic times, people are still traveling, but they are paying close attention to budgets and when makes the most sense to enjoy some time away. However, as reported today, AIG went on a major boondoggle to a luxury resort (St. Regis Resort at Dana Point in Monarch Beach, California) after being bailed out by U.S. tax payers, aka the U.S. government. So, is AIG exempt from tightening its belt and doing what is right? They had no problem asking for and receiving tax payers’ monies.

Not sure how a company who just received $85 billion in a bailout package could possibly justify or even reason that a week-long stay at the swanky St. Regis Monarch Beach Resort, complete with above average room views including the resort’s Presidential Suite (which was discounted from its every day rate of $3,200 a night to a bargain price of $1,600 per night as stated in an article by The Washington Post).  

It is reported that AIG company executives attended a conference from September 22^nd through September 30^th and nothing was spared for this retreat. In fact, $23,000 was spent for spa treatments.

Photo Credit: Starwood (Spa Gaucin's Orange Frappe)

Perhaps the AIG staff who attended this boondoggle was stressed from destroying their company and willingly taking $85 million of American’s monies. It must be nice to be allowed the discretion to spend $175 on a Divine Grapeseed Mud Wrap or maybe $675 for a Costal Romance spa package.

Who would not want to spend a week at this 400-room oceanfront luxury escape? The St. Regis Monarch Beach Resort boasts three swimming pools, a prestigious oceanfront 18-hole golf course, divine spa, a private beach, six breathtaking ocean view restaurants, and more amenities.

This was not a corporate meeting to try to turn the company around, which in the state AIG is, they need to consider holding their meetings in their own offices or in a park, not spending more than $440,000 on a reward vacation to recognize AIG sales people and others. Seriously, there should be zero recognition or bonuses or special treatments, especially travel, for any AIG official for years to come.

AIG needs to take responsibility and treat the $85 billion dollars being given to them as a bailout as American citizens’ monies and how the average U.S. tax payer would treat this money and prioritize spending. A $440,000 extravagant vacation? I doubt that the common tax payer would consider this a wise investment.

AIG should be ashamed and embarrassed for this poor judgment thinking now was the right time to take a luxury vacation. Not only should the executives who authorized this haphazard travel expense be fired, but every employee who willingly went and took advantage of this country’s economic situation should be let go. Let’s see where these AIG staffers vacation next!