AIG may cut bonuses by about 30% | business | Hindustan Times
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AIG may cut bonuses by about 30%

The American International Group (AIG) will pay about $46 million in retention bonuses on Monday, or about 30 per cent less than previously scheduled, a person with direct knowledge of the arrangements said.

business Updated: Mar 15, 2010 23:47 IST

The American International Group (AIG) will pay about $46 million in retention bonuses on Monday, or about 30 per cent less than previously scheduled, a person with direct knowledge of the arrangements said.

Officials at AIG are hoping that by holding back $21 million in bonuses they will put to rest a controversy that has plagued the insurer ever since its government rescue in 2008.

AIG hopes the cuts will satisfy the Treasury’s Kenneth R. Feinberg, who has said the employees should return $45 million of a previous round of bonuses. The bonuses were contractually granted early in 2008, months before the bailout, and were scheduled to be paid over two years.