American International Group Inc., the troubled insurer condemned by members of Congress last year for holding a $400,000 retreat after taking billions of dollars in government bailout money, is hosting a million-dollar conference at a luxury spa in Ojai, Calif., this weekend.
This time, though, the company said it would spend only $30,000 for airfare, hotel rooms, meals and ground transportation for 200 independent financial advisers. The rest of the bill, $1.27 million, will be picked up by sponsors, AIG spokesman Mark Herr said.
This event is geared toward creating business, the company said, as opposed to last year’s retreat, when some senior executives were wined and dined at a posh resort in Dana Point, Calif.
“We’re hosting this event ever mindful of the atmospherics of last year,” Herr said. “We’re trying to get back to conducting business to pay back the taxpayer.”
In addition to the financial advisers, 30 sponsor partners who sell financial products and 20 AIG senior management members would attend, Herr said. Spouses and additional guests have to pay their own way, he said. Golf outings, spa treatments and other recreational activities will be paid for by the attendees or by the sponsors, Herr said.
AIG expects the event to generate $400 million in new business.
Gonzalo Freixes, a professor at UCLA’s Anderson School of Management who specializes in business ethics, said the event was a customary marketing move and appeared to be a reasonable investment. “It looks like they learned their lesson,” Freixes said. “They’re scaling back on their lavish tendencies and being more reasonable.”
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