Gerry Pasciucco was appointed head of American International Group Financial Products (AIGFP) group after the government rescue of AIG in 2008 and the target completion of the separation while minimizing the loss of the government. AIGFP failed trades threatened to bring down the entire company, and the government responded by lending AIG $ 182 billion in exchange for a 79.9% stake in the company, because he was afraid that AIG failure could cause a collapse of the entire global financial system. A few months into his tenure, the division paid large bonuses saving all their staff in accordance with the contract negotiated before he joined AIGFP. These bonuses have been perceived by the public as going to the very people whose mistakes led to the need for salvation in the first place, and led to an unprecedented storm of public outrage, culminating in a congressional hearing in which the Director AIG, Ed Liddy was repeatedly attacked for a bonus. Liddy said, asking people who obtain the largest payments to return the money to the company. Pasciucco now must decide how to lead your team through this crisis, and the struggles with greater justice retention payments. "Hide
by Gautam Mukunda, Thomas J. DeLong Source: Harvard Business School 11 pages. Publication Date: November 14, 2012. Prod. #: 413059-PDF-ENG
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