Tags: aol | distressed | babies | ceo | apology

AOL 'Distressed Babies': CEO Apologizes for Comment on Benefits Changes

Image: AOL 'Distressed Babies': CEO Apologizes for Comment on Benefits Changes

Monday, 10 Feb 2014 03:44 PM

By Morgan Chilson

  Comment  |
   Contact  |
  Print   |
    A   A  
  Copy Shortlink
AOL’s leader Tim Armstrong has apologized for remarks he made about “distressed babies” causing financial issues for the company and backed off his company’s decision to cut employees’ 401(k) benefits.

In an emailed memo that went out to employees on Saturday, Armstrong said AOL would continue to match 401(k) contributions, CNN Money reported. He also responded to remarks he made about health insurance payments that had garnered extensive criticism.

Urgent: Do You Approve Or Disapprove of President Obama's Job Performance? Vote Now in Urgent Poll

"The leadership team and I listened to your feedback over the last week. We heard you on this topic," the email said, according to CNN. “And as we discussed the matter over several days, with management and employees, we have decided to change the policy back to a per-pay-period matching contribution.”

Armstrong also addressed the comments he made during a town hall meeting when he pointed to two cases of distressed babies that cost his company $1 million. It was those comments that garnered extensive criticism.

“On a personal note, I made a mistake and I apologize for my comments last week at the town hall when I mentioned specific health care examples in trying to explain our decision-making process around our employee benefit programs," Armstrong said in the memo, Reuters reported.

In a CNN interview, Armstrong said he doesn’t have personal feelings about the Affordable Care Act.

“I have to deal with facts and reality, which is what does it do to our cost structure? And the fact is it’s one of the things that drove our costs up last year,” he told CNN, listing the ACA as one reason AOL leaders were changing benefits.

Deanna Fei, mother of one of the babies Armstrong cited as an example of increasing health care costs, wrote an article about the issue for Slate.

“I take issue with how he reduced my daughter to a 'distressed baby' who cost the company too much money. How he blamed the saving of her life for his decision to scale back employee benefits,” Fei wrote for Slate.

Editor's Note: Do You Support Obamacare? Vote in Urgent National Poll

Related Stories:

© 2014 Newsmax. All rights reserved.

  Comment  |
   Contact  |
  Print   |
  Copy Shortlink
Send me more news as it happens.
Get me on The Wire
Send me more news as it happens.
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
Zip Code:
Privacy: We never share your email.
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
You May Also Like

Cambodia HIV Outbreak: 100-Plus People Diagnosed; Investigation Sought

Friday, 19 Dec 2014 18:50 PM

More than 100 HIV infections in a single Cambodian village have spurred the country's prime minister to ask for an inves . . .

Slender Man Case: Two Girls Competent to Stand Trial in Stabbing

Friday, 19 Dec 2014 18:26 PM

Two girls who allegedly stabbed a 12-year-old friend over the online game Slender Man are competent to stand trial for a . . .

Kate Upton Sexiest Woman Alive; Model Apologizes to Teen Brother

Friday, 19 Dec 2014 17:52 PM

Model Kate Upton was selected as People magazine's first Sexiest Woman Alive, a month after Chris Hemsworth received the . . .

Top Stories

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

America's News Page
©  Newsmax Media, Inc.
All Rights Reserved