Thursday, July 9, 2009


American International Group announced Thursday that it would pay $2.4 million in bonuses to 40 top executives after a round of bonuses in March outraged the public. The insurance company has been waiting for the federal government’s blessing to give more bonuses with its $180 billion bailout check, even though AIG doesn't officially need permission from Obama's executive compensation czar, Kenneth Feinberg, since the bonuses are delayed from 2008.
An AIG official told The Washington Post the company was reluctant to distribute the cash. “We would want to feel comfortable that the government is comfortable with what we are doing,” he said. In March, it was revealed that AIG paid more than $165 million in retention bonuses to 400 employees in its Financial Products unit, whose derivative contracts almost destroyed the entire company.
Refusing to comment directly on the latest round of bonuses, a Treasury Department spokesman released a statement. “Companies will need to convince Mr. Feinberg that they have struck the right balance to discourage excessive risk taking and reward performance for their top executives,” he said.
Read it at The Washington Post

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