AIG execs agreed to return $ 50 million bonus

 

Tuesday, Mar 24,2009, 11:45:46 PM   Click:

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NEW YORK_New York Attorney General Andrew Cuomo said Monday that 15 employees who received some of the biggest bonuses of American International Group Inc has agreed to allocate over $ 30 million payment in full.

In total, the employees of AIG have agreed to return about $ 50 million $ 165 million in bonuses awarded earlier this month by the troubled insurer, Cuomo's office said.

Cuomo said he still hoped that AIG employees will return their bonuses. At most, Cuomo said his office could recoup $ 80 million bonus _ roughly the amount of compensation paid to American employees.

"I congratulate the employees who returned the bonus," Cuomo said during a conference call with journalists. "I think they are sensitive to the American people."

Cuomo said 9 of 10 people who receive the highest prices have agreed to make their bonus. In addition, 15 of the 20 recipients of premiums agreed to make their money. Cuomo said that some have refused to return the money, while others are still considering.

"We are very pleased that the vast majority of financial executives have expressed a willingness to renounce their recent retention payments," writes Christina Pretto, spokesperson in a statement by e-mail to the Associated Press. She added that the company continues to examine the responses of other employees.

AIG has been the subject of criticism because the bonuses were given to employees after the company received $ 170 billion in bailout funds from the government. Edward Liddy AIG Chief Executive of the Congress said last week that some of these employees were willing to donate money. But Liddy expressed concern in May that the company be unable to attract and retain talented employees if they feel that their pay is subject to adjustment by the Treasury.

Pretto said Monday that a "handful" of senior executives resigned from the financial products division, and there will probably be more resignations to come.

"We believe that at this stage, it is to manage," she says.

Cuomo said he does not publish the names of employees who agreed to return the premiums, and said there was no implied threat that if an employee does not consent to the premium return that their name will be published. Cuomo asked the names of employees who received bonuses Liddy through a subpoena.

He said his office is continuing to assess the safety of employees.

About 400 employees and future employees in the financial products division of AIG has received premiums. The documents provided by AIG for the Treasury Department said that the price ranges from $ 1,000 to nearly $ 6.5 million. Seven employees were to receive more than $ 3 million. Cuomo said last week AIG paid premiums of $ 1 million or more to 73 employees, including 11 who no longer works there.

In addition, Connecticut, Division of Consumer Protection has assigned AIG, by requiring that the contracts and the names of employees who received bonuses provided by March 27. Gov. M. Jodi Rell said she wants the division to determine whether the premiums can be canceled under the Connecticut law on unfair trade practices.

AIG in the financial products division which is headquartered in Wilton, Connecticut

The Connecticut Attorney General Richard Blumenthal said his office has also asked the prime beneficiaries of the names and amounts.

Last week the House passed a plan to strike a penalty, 90 percent tax on premiums paid to AIG employees whose family income exceeds $ 250,000. Not all AIG employees earned more than the income threshold specified by the House bill.

But President Obama has expressed opposition to House Bill Tax constitutional grounds.

The Senate is expected to quickly take up its own tax plan.