AIG reveals $454 million in 2008 performance bonuses

[Joanne98]

WASHINGTON (Reuters) - Embattled insurer American International Group paid some $454 million in previously undisclosed performance bonuses to employees for 2008, the company said in answers to questions from a U.S. lawmaker that were released on Tuesday.

AIG was widely criticized for paying out some $165 million in retention bonuses after it received some $180 billion in government bailout aid. Some of the retention bonuses were returned by employees after the firestorm of criticism.

The company told Representative Elijah Cummings, a Maryland Democrat, the performance bonuses were paid out by operating units, across the company's operations in some 120 countries.

Payments ranged from an average of $5,403 to employees of its property-casualty group, to $51,026 on average for those in its asset management group.

The payments are in addition to an about $120 million corporate bonus pool designated for holding company employees and executives at subsidiary companies.

The performance bonus plans for the various AIG units were set before the company teetered on the brink of bankruptcy, forcing them to take government aid last September.

The payments are separate from $1 billion in retention payments to entice employees to stay with the company.

The company also told Cummings AIG's bonus plans for 2009 were under development, "in consultation with the Federal Reserve and Treasury."

http://www.reuters.com/article/newsOne/idUSTRE5446VC20090505

[OhioChick]

1. When do handouts to these bastards end? n/t

[Romulox]

2. It's the "sanctity of contract"! (note: this does not apply to dirty, blue collar people.) nt

[AndyA]

3. Bonus and retention payments? Why the hell would they want people to stay?

Obviously, some very, very bad decisions have been made at this company. I assume by employees. What would those bonus payments be for? They ran the company into the ground due to their greed, neglect, ignorance, or something.

Why would a company want to retain employees that either did or allowed so much damage?

Dump the assholes and get some QUALIFIED, ETHICAL PEOPLE. You can probably find that they will work for less than the ones they're replacing. There are lots of unemployed right now who would like jobs, I'm sure AIG can find capable ones with fresh ideas that will turn the company around, and not demand bonuses for doing so.

Yes, some people will do a good job just for the agreed upon salary. Find them, AIG.

[Fireweed247]

4. K&R

"performance bonuses were paid out by operating units, across the company's operations in some 120 countries"


How nice for them. Well if they need any more, by all means don't be afraid to ask. We are over 10 trillion in debt and the credit card is maxed out, actually China just cut if off....but no worries.

[bobthedrummer]

5. K&R+ another informative AIG archived thread for you Joanne98

"What was AIG 'insuring' for all those black budget networks?" (started 10-4-2008)
http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x4169766

[Wednesdays]

6. K&R

:kick: