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Report: AIG Pays More Retention Bonuses

AIG -- the insurance giant that has thus far received $153 billion in bailout money and is 80-percent owned by the government -- is paying retention bonuses to at least 2,000 employees, Bloomberg is reporting.

The bonuses equal one year's salary, and employees were ordered to keep them secret, Bloomberg said.

AIG confirmed the bonuses to Bloomberg.

Retention bonus payments are common in troubled and reorganizing companies as a way to hold onto executives familiar with the companies's operations. Enron paid retention bonuses, for instance.

Except in AIG's case, the bonuses may be coming out of taxpayer money.

AIG has already been blasted for giving bonuses to 168 executives, with some getting as much as $4 million, AIG chief executive Edward Liddy told Congress last week.

Prior to that, AIG paid $440,000 for 70 top AIG contractors to spend a week at a California luxury resort -- days after the company got its first $85 billion in taxpayer money.

In late November, responding to bad p.r., AIG said that Liddy would get $1 in salary through next year, salaries would be frozen and seven top executives would not get 2008 bonuses.

-- Frank Ahrens
The Ticker is Twittering!

By Frank Ahrens  |  December 12, 2008; 6:02 PM ET
Categories:  The Ticker  | Tags: AIG, bailout  
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Next: This Week: Auto Bailout in Focus

Comments

HA! Where are those traitorous GOP hillbilly Congressmen McConnell, DeMint, Shelby, Corker now??????? Where are their lofty principles and haughty ideals of frugality and fiscal responsibility, allowing failed businesses to fail on the cross of capitalism?

McConnell, DeMint, Shelby, Corker voted yesterday to destroy the American auto industry and millions of jobs held by real Americans, but they have no problem shoveling cash to AIG and their other friends on Wall Street! Now this insight how those TARP beneficiaries get such windfall Christmas bonus payments from our $700B in tax money! Or what about all the tax money those same GOP Congressmen threw at the foreign car manufacturers who built non-union auto plants on the taxpayers dime in their home states of Alabama, Tennessee, South Carolina and other Southern states?

All while the AMERICAN auto industry only asked for a $14B bridge loan!

McConnell, DeMint, Shelby, Corker are traitors and should be impeached on corruption charges -- or hanged!

As Blago said -- just a bunch of Motherf----rs!

Posted by: hyperlexis | December 12, 2008 7:16 PM | Report abuse

So AIG has unrestricted funds to give one year's salary to employees and none of the Republican Senator's have anything to say but plenty to say to the GM (and the suppliers and the tool and die makers and the dealerships) workers like "so sad, too bad". Is this how the Republican party will re-positioning itself to appeal to the middle class?

Posted by: silvermarsh | December 12, 2008 7:18 PM | Report abuse

By all means, we wouldn't want to lose the geniuses that bankrupted the company. I only hope that they will be able to subsist on a measly $4,000,000 bonus. I;m sure they will recoup the money by refusing to pay for homes lost in disasters like Ike, Katrina or Wilma saying that it was a flood, not a hurricane that destroyed the homes. Do these people know the difference between wind and rain? Perhaps the saddest commentary is that reputedly intelligent people do not realize how they look to the rest of the country. The last time this country was pillaged this badly was when Europeans "discovered" America.

Posted by: kmar20009 | December 14, 2008 9:18 PM | Report abuse

hmm...absolute power corrupts absolutely.

i for one am tired of reading about corporate america wanting handouts for executive errors, while reading simultaneously about americans losing homes, jobs and barely being able to make ends meet for Christmas..and thereafter.

if the taxpayers have the bear the brunt of anything, why cant we bear the brunt of HELP EACH OTHER?

Posted by: silkysoul65 | December 14, 2008 9:42 PM | Report abuse

It's just a way they do business as they see it. They want to save their top talent.
Tell me something, where are their top talent going in this market and future market. The stock market like the Real Estate market will lose a lot of Broker in the very near future. There is a shake up coming with a lot of jobs being lost so tell me where are they going to go. Giving up that type of money is not the way to go. They are stupid.

Posted by: nbk55wb | December 14, 2008 9:51 PM | Report abuse

For to many years our Politicions have thought the Constitution was written for, by,and of the Coporation. Give them more what the hell the gov. printing presses can print more

Posted by: mtyshawl | December 14, 2008 10:03 PM | Report abuse

Reagan started this trickle down economics and the result has been eliminating the middle class and sending the aged into poverty. Let's try the trickle up economics. Give em jobs and wages. They will spend their wages and that money will move up the chain till it reaches the producers and even the fat cats will get their honest share. Trickle down is starting at the top, but instead of the money moving down the chain, the greedy invest it trying to increase their wealth. My theory is certain to work. We have seen what trickle down has done to our country.

Posted by: mtyshawl | December 14, 2008 10:18 PM | Report abuse

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