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Daily Insurance Industry News
Monday 20th of May 2019
July 26, 2009

AIG bonuses halted by US Treasury

by David Masters

Story link: AIG bonuses halted by US Treasury

AIG executives missed out on $2.4 million mid-year bonus payments last week after intervention by the US Treasury Department.

According to reports, the Treasury, which rescued AIG last year with a $180 billion bailout package, refused permission for the bonuses to be paid.

George Madison, the Treasury’s general counsel nominee, said AIG is negotiating with executives on reducing the $235 million bonus payments due next year.

The bonuses were not paid because a number of compensation issues are still being worked out, Madison said.

AIG declined to comment on Madison’s claim.

In March this year AIG sparked outrage among the American public when it paid $165 million in bonuses to employees of the unit responsible for AIG’s financial demise.

 

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