AIG To Pay $165 Million in Executive Bonuses

American International Group is giving its executives tens of millions of dollars in new bonuses even though it received a taxpayer bailout of more than $170 billion dollars.

Great to see MY tax dollars will help pay for these executives to get their bonuses!

From the Associated Press:

AIG is paying out the executive bonuses to meet a Sunday deadline, but the troubled insurance giant has agreed to administration requests to restrain future payments.

The Treasury Department determined that the government did not have the legal authority to block the current payments by the company. AIG declared earlier this month that it had suffered a loss of $61.7 billion for the fourth quarter of last year, the largest corporate loss in history.

Treasury Secretary Timothy Geithner has asked that the company scale back future bonus payments where legally possible, an administration official said Saturday.

This official, who spoke on condition of anonymity because of the sensitivity of the issue, said that Geithner had called AIG Chairman Edward Liddy on Wednesday to demand that Liddy renegotiate AIG’s current bonus structure.

Geithner termed the current bonus structure unacceptable in view of the billions of dollars of taxpayer support the company is receiving, this official said.

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7 Comments on “AIG To Pay $165 Million in Executive Bonuses”

  1. John M Says:

    Press Release for release by AIG on Monday morning:

    Thank you, America, for your generous donation to our non-profit organization. We do not know what we would do without you.

    As you fill out your income tax forms, please think of us, and all the good your taxes do for us.

    See you next month when we’re back for another generous donation.

    Love and appreciation,
    Your friends at AIG

  2. Jax Says:

    This is sick. Why in the world are we helping these companies that keep sending millions to people who do not know how to run a company? They cry yet get paid millions on the “average joes” taxes. Furthermore, I fear this is just the tip of the iceberg. Look what Enterprise rent-a-car did to get bailout funds:

  3. ajlouny Says:

    This is a gross abuse of the bailout and it is just a crime.

  4. Martin Says:

    American’s money went to AIG with an expectation and requirement that we get the money back. AIG, like every company in the world, has professionals that can work anywhere they want. Here is a stat: If you make more than $70,000 per year and you are not in the Automotive Industry (in the current environment)and you are in a conventional American Industry than you can go where ever you want for a job in an average of less than 4-weeks (3.2 to be exact). So..companies that are about to be purchased or merged offer what is called EPIPS. These are Exit strategy incentives. If these were not offered then any company under transition would fail because higher paid staff would not sit around hoping to feed their family. Look stupid Obamist’s….America is not a 20-year old kid with 2 children and 3 jobs. America is a people with Master’s degrees and MBO’s and 35-year career plans that end with Chief of something. They have these career plans because they washed cars when they were students and kissed ass and did everything that Obamist’s don’t want to do….then they paid tuition and got jobs because they interned when they were 20 and other things. AIG professionals must get bonuses because I do not want my tax money to be waisted in a failed leaderless company that insures everthing that is in the Free Market!!!!!!!!!!!!!!!!!!

  5. […] AIG bonuses furor: the class issues: […]

  6. Mechanic Says:

    Thank them for spending my money my hours cut and trying to pay bills these a$$holes given money then give out bonus. where is my bonus check from the government.

  7. stealthwriter Says:

    I think that the whole thing is an example of the stupid people in charge. Why don’t they make all of us millionairs or just resign. Either way we would be better off.

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