AIG’s ‘lite’ bonus plan slammed | business | Hindustan Times
Today in New Delhi, India
Jul 28, 2017-Friday
-°C
New Delhi
  • Humidity
    -
  • Wind
    -

AIG’s ‘lite’ bonus plan slammed

The American International Group (AIG) might have agreed to cut employee bonuses by $20 million — according to people with knowledge of the negotiations — but its critics still saw red over the $100 million the company was expected to pay out in bonuses on Wednesday.

business Updated: Feb 03, 2010 21:58 IST

The American International Group (AIG) might have agreed to cut employee bonuses by $20 million — according to people with knowledge of the negotiations — but its critics still saw red over the $100 million the company was expected to pay out in bonuses on Wednesday.

Critics rejected the company’s argument that it has to honor contracts established before its government bailout.

“A.I.G. has taxpayers over a barrel,” said Senator Charles E. Grassley, in a statement on Tuesday night. “The Obama administration has been outmaneuvered. And the closed-door negotiations just add to the skepticism that the taxpayers will ever get the upper hand.”

A.I.G. first promised the retention bonuses to keep people working at its financial products unit, which traded in the derivatives that imploded in September 2008, leading to the biggest government bailout in history.