Pamela J. Powers, a progressive voice for Arizona
AOL Chairman and CEO Tim Armstrong reported that the highly profitable, multi-million-dollar company was forced to cut employee benefits because of increased insurance costs under the Affordable Care Act (ACA) and the cost of care for two sick dependent children born to AOL employees.
Armstrong (who made $12 million in 2012) said because AOL paid $1 million for medical care for the two babies, the company must scale back the employee retirement plan. He also claimed that the ACA has increased AOL’s insurance cost for 5000 employees by $7 million.
On the same day that Armstrong blamed the babies, AOL announced it’s “strongest revenue growth in decades” — with 2013 revenue at $679 million, up 13% over 2012.
Oh, right, blame the sick babies! It’s obviously their fault. It has nothing to do with corporate greed or over-blown CEO salaries.
Due to public pressure, AOL reversed this decision.