March 15th, 2009 | 
Author: Executives of the troubled, American International Group (AIG), which received a taxpayer bailout of more than $170 billion are to receive bonuses amounting to $9.6 million!
The recipients of the bonuses, which involve the companies top fifty executives will get one half of their bonuses today (March 15th), and two further payments of 25% each are scheduled for July 14 and September 15, with the average bonus being around $112,000.00
AIG Chairman Edward Liddy earlier informed the Treasury that outside lawyers had informed the company that AIG had contractual obligations to make the bonus payments and could face lawsuits if it did not do so, and wrote that, “in light of the company’s current situation I found it distasteful and difficult to recommend going forward with the payments but AIG’s hands are tied”.
Treasury Secretary Timothy Geithner had requested the company scale back future bonus payments where legally possible, but admitted that the government did not have the legal authority to block the current payments by the company.
In his letter to Geithner, Liddy wrote, “We believe there will be considerably greater flexibility to reduce contractual payments in respect of 2009, and AIG intends to use its best efforts to do so. We cannot attract and retain the best and brightest talent to lead and staff the AIG businesses, which are now being operated principally on behalf of the American taxpayers, if employees believe their compensation is subject to continued and arbitrary adjustment by the U.S. Treasury”.
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Posted in AIG, American International Group, bonuses, executives, Geithner, news | 
Tags: AIG, American International Group, bonuses, executives, Geithner
