Yes, you guessed it. Some of the bonus for AIG top executives for last year’s stellar performance. And note, that this is just the bonus.
I made a quick calculation on this. What about if this was the full year’s salary, and not just the cream on top? What if you were to hire this person out as a consultant, since the person i question has to be absolutely brilliant to deserve such a salary?
Long time ago I learned a very rough rule-of-thumb for how much you had to charge a client for a consultant. The rule was that you would have to charge about 3 times the salary you paid to cover for all the other costs involved (including the risk of having them sitting on the bench).
So how much is $6,500,000 really if you start to break it down? Well it’s $125,000 per week, or $25,000 per day if you assume a 5 hour work week. If you then assume 8 hour work days we get to $3,125 per hour. So to hire a person earning that amount of money as a consultant would require you to pay roughly $10,000 per hour.
If you need somebody I’m available…