Despite receiving over $170 billion in federal loans in 2008 to save the company from bankruptcy, American International Group paid out over $165 million in "retention bonuses" to executives in March 2009. According to New York attorney general Andrew Cuomo, AIG paid $1 million or more to 73 individuals, eleven of which no longer work for the company. This has sparked public outrage and on March 19, 2009, the U.S. House of Representatives voted to approve a 90 percent tax on AIG employee bonuses and bonuses from companies that accepted $5 billion or more in taxpayer bailout funds.New York Times: House Passes Tax on Executive... (March 19, 2009)
New York Attorney General Andrew Cuomo, has announced that nine of the top 10 bonus getters at the embattled financial giant will be returning their bonuses in full. Cuomo stated that the returns will total approximately $30 million, he seeks to recoup $80 million.CBSNews.com: Top AIG Bonus Receivers Returning The Cash (March 23, 2009)
AIG Bonus Recipients
- Douglas Poling
References
Fast Facts
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Executive Douglas Poling, who receved one of the largest bonuses, has agreed to pay it backWall Street Journal: Some Will Pay Back AIG Bonuses (March 19, 2009)
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Paid out over $165 million in retention bonuses to executives in March 2009New York Times: House Passes Tax on Executive... (March 19, 2009)
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Bonuses were paid out to employees of AIG's financial products unitNew York Times: House Passes Tax on Executive... (March 19, 2009)
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418 AIG employees received bonuses
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AIG says they were contractually obligated to pay the bonusesWall Street Journal: Some Will Pay Back AIG Bonuses (March 19, 2009)
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AIG's government-installed chief executive, Edward Liddy says he asked employees who received over $100,000 in bonuses to give back at least half that amountWall Street Journal: Some Will Pay Back AIG Bonuses (March 19, 2009)
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Liddy said many recipients have already agreed to pay back the bonusesWall Street Journal: Some Will Pay Back AIG Bonuses (March 19, 2009)
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The federal loan of $170 billion makes the U.S. government a majority owner in AIG, with an nearly an 80% stakeWall Street Journal: Some Will Pay Back AIG Bonuses (March 19, 2009)
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House Financial Services Committee representative Rep. Barney Frank has requested the identities of executives who received the bonusesWall Street Journal: Some Will Pay Back AIG Bonuses (March 19, 2009)
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Liddy says security is a concern as many of the financial products unit employees have received death threatsWall Street Journal: Some Will Pay Back AIG Bonuses (March 19, 2009)
