AIG plans to pay about $100 million in bonuses Wednesday
By Brady Dennis
Washington Post Staff Writer
Tuesday, February 2, 2010
American International Group plans Wednesday to pay another round of employee bonuses worth about $100 million, said several people familiar with the matter, a year after similar payments at the bailed-out insurance giant infuriated many Americans and inflamed Washington.
This week's retention payments will go only to employees at the company's Financial Products division who agreed recently to accept 10 to 20 percent less money than AIG had initially promised them years ago. In return, they are receiving their payments more than a month ahead of schedule.
The company is still scheduled to pay out tens of millions of dollars more in March, mostly to former employees who did not agree to the concessions.
AIG executives have been scrambling to hammer out a compromise before March 15, when the firm faces a deadline to pay nearly $200 million in bonuses to employees at Financial Products, the unit whose risky derivatives deals brought the insurer to the brink of collapse in 2008. Government and AIG officials have been eager to avoid a repeat of the public furor that erupted last March when an earlier round of payments -- worth $168 million -- went to the same set of employees.
(More here.)
Washington Post Staff Writer
Tuesday, February 2, 2010
American International Group plans Wednesday to pay another round of employee bonuses worth about $100 million, said several people familiar with the matter, a year after similar payments at the bailed-out insurance giant infuriated many Americans and inflamed Washington.
This week's retention payments will go only to employees at the company's Financial Products division who agreed recently to accept 10 to 20 percent less money than AIG had initially promised them years ago. In return, they are receiving their payments more than a month ahead of schedule.
The company is still scheduled to pay out tens of millions of dollars more in March, mostly to former employees who did not agree to the concessions.
AIG executives have been scrambling to hammer out a compromise before March 15, when the firm faces a deadline to pay nearly $200 million in bonuses to employees at Financial Products, the unit whose risky derivatives deals brought the insurer to the brink of collapse in 2008. Government and AIG officials have been eager to avoid a repeat of the public furor that erupted last March when an earlier round of payments -- worth $168 million -- went to the same set of employees.
(More here.)
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1 Comments:
Ten bucks and my life savings says the "contracts" drawn up on these employees' bonuses were written with the knowledge that the firm would be bailed out with taxpayer dollars.
Obvious fraud is obvious.
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