Cuomo says AIG execs agree to return $50M bonuses - Yahoo! News
Cuomo says AIG execs agree to return $50M bonuses
AP – Thursday, March 19, 2009,
By SARA LEPRO, AP Business Writer Sara Lepro,
Ap Business Writer – 2 hrs 48 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.
Excuse me, but employees who BANKRUPT a company ARE NOT entitled to a bonus at the expense of the American taxpayers and if you don't think you can attract and retain talented employees because their compensation is subect to adjustment by the Treasury, you would be wrong. The Treasury told DODD to change the language in his BILL to provide for exhorbitant bonuses. I would surmise that the bonuses paid to the executives of AIG, at this point, have been adjusted by the American people WHO PAID THEM.
I'm sure there are plenty of qualified, unemployed people out there who would jump at the chance to work for AIG with or without a bonus.
When applicants apply for employment, will they be working for AIG or the Treasury Department? Obviously, you are now 80 percent owned by the government; although we've been told that the taxpayer's bailed you out and, in actuality, WE SHOULD OWN YOU.
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.
Since the American people have paid bonuses to the executives of AIG, we are entitled to know their names.
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.