"The bill would apply to bonuses of people making more than $250,000 a year, and would apply only to payments from companies getting more than $5 billion from the federal government."
So now, everybody making more than $250,000 and getting bonuses at AIG will quit and find a job elsewhere. For example, if a trader makes tens of millions in profit for the company or a salesman brings in hundreds of millions in new client funds, that person will quit and find work for somebody willing to pay for his talents. In the end, the good employees, the ones earning big bonuses as a result of making huge profits for the company, will quit. And the bad employees who don't do well enough to earn a bonus will stay.