London has a higher tax rate. Moving 20 executives to London does not constitute a legitimate headquarters move just to avoid certain taxable transactions (territorial tax & repatriation of various currencies back into 'clean' US dollars) raises alarm bells to shareholders big time. Possible criminal charges to the Board of Directors & key executives are forthcoming.
Please...the tax situation is, simply put, better in the UK than in the US. They can make all the money they want in tax free havens and not be taxed, just like the US was 40 years ago. Now, the US is simply business adverse because our illustrious politicians, ALL of them, need money for their reckless spending and social programs. Hold on to your AON stock, it's going up, period.
3 members of the board voted against or abstained in the decision to shift to London. There is much more here than meets the eye. It will be interesting to see Case and Crista explain this, and the DOJ deal, in their next quarterly call, that is if Crista is done with workforce reductions.
Workforce reductions should continue until you can match service demands directly against what the client is willing to pay for such service requirements. Too many of these so-called clients just want a free pass on service. They brag about this at RIMS. They treat brokers as idiots because of this. In this new world, ballgame is over with that. Perhaps, and hopefully, clients will start to equate the old saying "you get what you pay for" to service requirements. Or else, they can wait like everyone else and be charged T&E, just like they cahrge their customers. Hey, it's about time, no?
1)Aon paid $16.3 million fine in Dec/11 to DOJ/SEC for basically bribing Costa Rican govt. officials and that bribe was made from the Aon's UK subsidiary.
2)Jan/12 Aon announces it is moving to London because it can't bring back capital to the USA w/o that money being tax.
Sounds like it's 'ok' to bribe people out of England if you are an English company & America actually has standards too high. Also money can be cleansed via going through London w/o as much tax even though the cost of doing business and income tax in London is much higher.
That is REALLY SCREWED UP.
Now all these Bermuda companies are going to leave and all want to do the same thing to get out while the getting is good and will follow what the next guy got away with.
Someone in the US Govt. get your head out of your rear end & make some changes here immediately please. Obama - where are you?