AIG Bonus Repayment?
Posted by admin . Published on 03 February 2010, Received
President Obama’s pay czar has called AIG’s expected latest round of bonus payments “outrageous”.
The comments of Kenneth Feinburg come as reports say the insurance giant will later on Tuesday pay out $100m (£63m) to its financial products division.
He said these bonuses were the result of old contracts, but by March they would be “a thing of the past”.
AIG was bailed out with $182.3bn of US aid in 2008, and staff have already given back $39m of earlier bonuses.
Mr Feinberg is “insisting” that AIG workers repay a further $6.7m to $7m of previous bonus payments.
Senior Republican Senator Charles Grassley argued that the US administration had been outmanoeuvred and “AIG has taxpayers over a barrel”.
