AIG Holding Back $21M in Bonuses
AIG is withholding $21 million in retention bonuses that were set to be paid Monday to current and former employees of the company's financial products division, according to a
In an effort to quell public outrage about lavish bonuses, AIG has set about to recoup $45 million in bonuses paid to members of the same unit whose risky deals would have brought down the insurer if not for a nearly $180 billion federal bailout in September 2008.
Lawmakers and federal officials, including White House executive pay czar Kenneth Feinberg, have consistently expressed indignation over AIG's bonuses, which the insurer has insisted it is contractually obligated to pay out. After paying out $165 million in bonuses last year, AIG began a voluntary giveback program and recouped $40 million.
With the latest giveback, the insurer will exceed its $45 million giveback goal.
AIG is still paying out $46 million to around 70 people, many former employees of the financial products unit, according to CNBC's report.
In all, AIG was set to pay out $195 million in bonuses by March 15, but many employees agreed to reduce lesser amounts in exchange for an earlier payment, which saved the insurer $20 million. The $46 million payment is going to those employees who are still owed bonus money.
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In fact it was the Unions who saved Xerox.
Each time it is failed management that causes the fall and we the people have to pick up the pieces and fix it at our expense.