AIG: $2.4 million in bonuses on hold

Insurer was scheduled to pay bonuses to 43 top executives July 15, but Treasury official nominee says they were not paid.

EMAIL  |   PRINT  |   SHARE  |   RSS
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all RSS FEEDS (close)
By David Goldman, staff writer

AIG bonuses
The bonus saga continues with payments scheduled for later this year and 2010.
FP retention bonuses: $450 million
Paid $215 million
Pending $235 million
Executive bonuses: $121 million
Paid $116.2 million
Pending in July $2.4 million
Pending in Sept. $2.4 million
Who will benefit most from the Obama administration's proposed financial regulations?
  • Consumers
  • Banks
  • Regulators

NEW YORK ( -- Troubled insurer AIG did not pay $2.4 million in bonuses scheduled to be delivered to top executives on July 15, according to a Treasury official nominee.

George Madison, nominated to be general counsel for the Treasury Department, told Senate Finance Committee Ranking Member Chuck Grassley, R-Iowa, on Wednesday that he had "been advised that AIG did not make any bonus payments to its senor executives on or around July 15, 2009," in response to questioning about the matter.

AIG (AIG, Fortune 500) sought the government's consent earlier in July to make the performance bonus payments to 43 of the company's top-ranking executives.

The company declined to comment.

Millions under review. Kenneth Feinberg, the Obama administration's pay czar, was tasked with reviewing the scheduled $2.4 million, along with payouts of $235 million more scheduled to be paid out to AIG-Financial Products employees next year. Feinberg is analyzing bonuses and retirement packages for the 100 highest-paid executives at AIG, Citigroup (C, Fortune 500), Bank of America (BAC, Fortune 500), General Motors, GMAC, Chrysler and the now defunct Chrysler Financial.

Madison, a presidential nominee, is currently working for Treasury, a Treasury spokesman said.

However, Madison said Feinberg has not issued any advisory opinion on compensation, including AIG. He would only say that Feinberg continues to work with the troubled insurer.

AIG is trying to avoid another public uproar about its bonuses, after furor erupted in March when it was revealed that the company had paid out $165 million of retention bonuses to those employees.

The $2.4 million is part of a larger bonus pool of $121 million, the vast majority of which was paid out in March to the company's most senior executives.

The $165 million -- and remaining $235 million -- is from a larger retention bonus pool of $1 billion. To top of page

They're hiring!These Fortune 100 employers have at least 350 openings each. What are they looking for in a new hire? More
If the Fortune 500 were a country...It would be the world's second-biggest economy. See how big companies' sales stack up against GDP over the past decade. More
Sponsored By:
More Galleries
RadioShack: 94 years of hits and misses The electronic giant's road to ruin is littered with 8-tracks, CD payers, pagers and many, many calculators. More
The best TV deals for the Super Bowl Want a new TV for the Super Bowl? Some great deals make now the time to buy. More
Top-paying jobs Orthopedic surgeons take home a median $410,000 in salary and bonus annually. What other great careers from CNNMoney and's list of Best Jobs in America offer hefty paychecks? More
Worry about the hackers you don't know 
Crime syndicates and government organizations pose a much greater cyber threat than renegade hacker groups like Anonymous. Play
GE CEO: Bringing jobs back to the U.S. 
Jeff Immelt says the U.S. is a cost competitive market for advanced manufacturing and that GE is bringing jobs back from Mexico. Play
Hamster wheel and wedgie-powered transit 
Red Bull Creation challenges hackers and engineers to invent new modes of transportation. Play

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer.

Morningstar: © 2015 Morningstar, Inc. All Rights Reserved.

Factset: FactSet Research Systems Inc. 2015. All rights reserved.

Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved.

Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor’s Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2015 and/or its affiliates.