$1 Million Bonuses for at Least 73 AIG Executives
2:57 P.M.: UPDATED BELOW WITH MORE DETAILS:
At least 73 employees of AIG's Financial Products unit -- the London-based division of the insurance giant that sold the high-risk derivatives blamed for the company's near-collapse -- got bonuses of at least $1 million out of the $165 million pot of bonuses that was recently revealed, New York Attorney General Andrew Cuomo said moments ago.
Cuomo subpoenaed AIG yesterday for details of the bonuses. AIG has received $173 billion in government bailout money to stay in business.
According to Cuomo, 11 of the AIG employees who received bonuses are no longer with the company, obviating the concept of the "retention bonus."
Also, $42 million of the $165 million in bonuses was given to 10 AIG employees, Cuomo said.
"Again, these payments were all made to individuals in the subsidiary whose performance led to crushing losses and the near failure of AIG," Cuomo writes. "Thus, last week, AIG made more than 73 millionaires in the unit which lost so much money that it brought the firm to its knees, forcing a taxpayer bailout. Something is deeply wrong with this outcome."
You can read his entire letter to Rep. Barney Frank (D-Mass.), head of the Financial Services committee, here.
Cuomo's letter also says:
-- The top recipient of the bonuses received more than $6.4 million.
-- The top seven recipients got more than $4 million each.
-- A retention bonus for an employee who left totaled $4.6 million.
March 17, 2009; 2:57 PM ET
Categories: The Ticker | Tags: AIG, Cuomo, bonuses
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