AOL CEO Apologizes for Blaming Scaled-Back 401K on Sick Babies
AOL CEO Tim Armstrong issued an apology to his employees after scaling back the company’s 401K contribution matches.
Armstrong originally blamed the move on two babies with costly health problems. “We had two AOL-ers that had distressed babies that were born that we paid a million dollars each to make sure those babies were OK in general. And those are the things that add up into our benefits cost.”
On America’s Newsroom, Fox News contributor Leslie Marshall said that as a mother of a child who died from a terminal illness, she was “shocked and appalled” by Armstrong’s comments. She said he also violated HIPAA privacy rules.
“I get so tired of CEOs blaming the Affordable Care Act or any kind of health care when it takes away from their own personal wealth. A lot of these people make seven-digit salaries, whether their companies succeed or not," Marshall said.
Radio talk show host Michael Graham noted that this wasn’t Armstrong’s first “stupid” move. The CEO was recorded firing an employee during a staff meeting.
However, Graham said ObamaCare is forcing AOL to deal with their struggling fiscal reality. “Blaming it on the kids of course is stupid and oafish, but the math is still math.”
AOL has since restored its 401K policy.