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Aig Plans To Hold Back Bonuses

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by Kent Bernhard, Jr.
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Mar 15 2010 6:40am EDT

Less Bonus for You

American International Group will hold back on paying full bonuses to members and former members of its Financial Products unit, sources tell several news organizations.

The insurer, which the U.S. government has had to prop up with more than $100 billion in aid because of bad bets in the derivatives markets, was planning to pay $46 million in retention to employees. Sources tell Reuters that’s about $21 million less than it had previously planned.

It’s little wonder that AIG, which is 80 percent owned by the taxpayers, would hold back on bonuses, given the furor they have caused in the past year. That led Kenneth Feinberg, the U.S. Treasury’s special master for compensation at the company, to ask for the return of $45 million of those bonuses by employees and former employees.

Kent Bernhard Jr. is News Editor of Portfolio.com

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