/ March 25, 2009

AIG Executives Agree to Return Bonuses Due to State Pressures

Because of the mounting pressure from a bipartisan legion of state attorney generals, executives at at the insurance giant American International Group (AIG), a New York-based company, have agreed to return $50 million in bonus payments they received earlier this month.

As of late Monday, 15 of the top 20 bonus recipients agreed to return those payments to AIG. AIG has received  billions of dollars in federal bailout funds to help keep the company solvent.
New York Attorney General, Andrew Cumo, said, “You have done what this country needs and demands. We are living in an era of corporate and individual responsibility. I thank you for setting an example for the rest of the country.”
On Monday, Cuomo said that the investigators from his office are “working our way down the list, ” in hopes of recouping much of the $800 million in bonuses paid to the company’s U.S. employees. The remaining $85 million in bonuses paid earlier this month went mainly to foreign AIG employees.
In all, 20 state attorney generals announced investigation on Friday into the bonuses paid by the AIG to its senior executives, including CEO, Edward Liddy. The officials are demanding names of bonus recipients and documents concerning the bonuses.
Cuomo said that he did not intend to release the names of the people who agreed to return their bonus payments. “My intention today is is a person returns the money, I don’t believe there is a public interest in releasing the names,” Cuomo said. “People who return the money, they would no longer be on our list.”

Source: Legal News Line and Wall Street Journal Market Watch

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