AIG was insolvent and instead of going into bankruptcy, the US government stepped in.
AIG has now admitted they have recently been giving millions in bonuses to executives for "retention". With the financial industry slowdown, where would those executives be going? These bonuses are unneeded and shameful.
This follows up on the expensive hotel party in October.
Where is the outrage when AIG uses bailout money for bonuses?
AIG Says More Managers Get Retention Payouts Topping $4 Million
By Hugh Son
Dec. 9 (Bloomberg) -- American International Group Inc., the insurer whose bonuses and perks are under fire from U.S. lawmakers, offered cash awards to another 38 executives in a retention program with payments of as much as $4 million.
The incentives range from $92,500 to $4 million for employees earning salaries between $160,000 and $1 million, Chief Executive Officer Edward Liddy said in a letter dated Dec. 5 to Representative Elijah Cummings. The New York-based insurer had previously disclosed that 130 managers would get the awards and that one executive would get $3 million.
“I remain concerned, as do many American taxpayers, that these retention payments are simply bonuses by another name,” Cummings said in letter responding to Liddy.
AIG, which received a U.S. rescue package of more than $152 billion, has been criticized for saying it will eliminate bonuses for senior executives while still planning to hand out “cash awards” that double or triple the salaries of some managers. The payments are designed to keep top employees at AIG while Liddy seeks to sell units and pay back the federal government, which owns 79.9 percent of AIG.
...
No comments:
Post a Comment