Cuomo says AIG execs agree to return $50M bonuses

Discussion in 'Political Zone' started by WoodysGirl, Mar 23, 2009.

  1. WoodysGirl

    WoodysGirl Need A Win...By any means necessary Staff Member

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    By Sara Lepro, Ap Business Writer – 2 hrs 6 mins ago

    NEW YORK – New York Attorney General Andrew Cuomo said Monday that 15 employees who received some of the largest bonuses from American International Group Inc. have agreed to return the more than $30 million worth of payments in full.

    In total, AIG employees have agreed to return about $50 million of the $165 million in bonuses awarded earlier this month by the troubled insurer, Cuomo's office said.

    Cuomo said he still hopes that more AIG employees will return their bonuses. At most, Cuomo said his office could hope to recoup $80 million of the bonuses — roughly the amount paid out to American employees.

    "I applaud the employees who are returning the bonuses," Cuomo said during a conference call with reporters. "I think they are being responsive to the American people."

    Cuomo said 9 of the 10 people receiving the largest awards have agreed to return their bonus. Additionally, 15 of the top 20 bonus recipients have consented to returning their money. Cuomo said some have refused to return the money, while others are still considering it.

    "We are deeply gratified that a vast majority of Financial Products' senior leadership have expressed a willingness to forsake their recent retention payments," wrote spokeswoman Christina Pretto in a statement e-mailed to The Associated Press. She added that the company is continuing to review the responses of the other employees.

    AIG has come under heavy criticism because the bonuses were given to employees after the company received $170 billion in government bailout money. AIG Chief Executive Edward Liddy told Congress last week that some of the employees were willing to give the money back. But Liddy has expressed concern that the company may not be able to attract and retain talented employees if they believe their compensation is subject to adjustment by the Treasury.

    Pretto said Monday that a "handful" of senior-level executives have resigned from the financial products division, and that there will likely be more resignations to come.

    "We do believe that at this point it's all manageable," she said.

    Cuomo said he doesn't plan to release the names of the employees who have agreed to return the bonuses, and said there is no implied threat that if an employee doesn't consent to returning the bonus that their name will be released. Cuomo had sought the names of the employees who received bonuses from Liddy through a subpoena.

    He said his office is continuing to assess the security of the employees.

    About 400 employees and future employees in AIG's financial products division received bonuses. Documents provided by AIG to the Treasury Department said the awards ranged from $1,000 to nearly $6.5 million. Seven employees were to receive more than $3 million. Last week Cuomo said AIG paid bonuses of $1 million or more to 73 employees, including 11 who no longer work there.

    Separately, Connecticut's consumer protection division has subpoenaed AIG, demanding that the contracts and names of employees who received the bonuses be provided by March 27. Gov. M. Jodi Rell has said she wants the division to determine whether the bonuses can be voided under the Connecticut Unfair Trade Practices Act.

    AIG's financial products division is headquartered in Wilton, Conn.

    Connecticut Attorney General Richard Blumenthal says his office also demanded the bonus recipients' names and the amounts.

    Last week, the House passed a plan to slap a punitive, 90 percent tax on bonuses paid to AIG employees whose family income surpasses $250,000. Not all of the AIG employees earned more than the income threshold specified by the House bill.

    But President Obama has signaled opposition to the House's tax bill on constitutional grounds.

    The Senate is soon expected to take up its own plan on the tax.
  2. ShiningStar

    ShiningStar Well-Known Member

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    Give the money, take the money, give the money, tkae the money. Politicians do love music.
  3. Hoofbite

    Hoofbite Well-Known Member

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    Who the hell has ever heard of a bonus like these guys get?

    Give me a bonus like that.
  4. WoodysGirl

    WoodysGirl Need A Win...By any means necessary Staff Member

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    Well the last two jobs I've had, I've received bonuses; mostly on the low end of what the AIG folks have gotten. I imagine those higher up the food chain get larger bonuses.

    I'm pretty sure those who got the $1k bonuses can't afford to return the bonuses. They've probably already paid bills with it.
  5. Dallas

    Dallas Old bulletproof tiger

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    You have never heard of high end executives getting huge lucrative bonuses like these?

    Come out from under the rock.

    All big execs of most Fotrune 100 companies get these types of monies, some ever more. It isn't uncommon. Just because you don't and never heard of it doesn't make it a bad thing.

    You dont scream when football players get 20-30 million SB's. Where are is all the UNFAIR screaming when you have NFL rookies getting far more than a 5 million SB. =)
  6. ninja

    ninja Numbnuts

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    Now we gewt to hear the local governments cry about not getting their % of the bonus from taxes.:lmao2: NYC mayor has already said NYC would have massive cuts if the top execs living in the city didn't get their bonuses.
  7. Doomsday101

    Doomsday101 Well-Known Member

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    Did he mention anything about his own involvement in this mess? Pushing these lending institutions to give out loans to low income people who did not have a chance in hell of ever being able to pay back the loans? The hypocrisy of these politicians knows no bounds. They sit in their judgment seat never talking about their own roles in this mess or how they misuse tax payer money for their own comforts.
  8. Hoofbite

    Hoofbite Well-Known Member

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    Yes, I've heard of the bonuses. I was just pointing out that its nuts that they are so big.

    And you're right. I don't care about what football players are paid. I do think rookies are at times paid too much but don't really care other than that. Is there a reason I should?

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