I feel like this should be a bigger deal
From last week’s Tuesday Morning Quarterback:
Meanwhile, previous AIG CEO Edward Liddy repeatedly said he was working “for $1 a year.” He asserted this on “60 Minutes” and in sworn congressional testimony, and was broadly praised for his dollar-a-year service. Now it turns out he was lying.
AIG quietly said Liddy received $38,368 for a New York apartment, $47,578 for personal airline flights, $31,348 for car services and $180,431 “to cover tax obligations.” In what sense are these not income? You work at a job in order to be able to pay for your housing and transportation. You must earn income to pay your taxes; nobody pays them for you. If AIG was paying for Liddy’s housing, personal travel and taxes, then he wasn’t earning $1 a year. Yet he lied through his teeth about this and got away with it. That’s the core lesson of corporate scandals — the CEOs tell lies, pocket cash and never pay any penalty. What does this encourage? More CEO lying.