Quarter of a billion up for grabs in bonuses at AIG

South Africa News.Net
Friday 10th July, 2009

Around $250 million in bonuses are becoming due at American International Group (AIG).

The troubled insurer is facing pay-outs within days, with the quarter-billion-dollar total all due within eight months.

AIG has referred the claims to the U.S. Treasury which controls the troubled insurer by virtue of its Federal Government bail-out.

According to The Washington Post the most concern relates to around $200 million in bonuses which become due to executives at AIG Financial Products, the unit whose complex derivative contracts nearly wrecked the insurance giant last fall. These are due in March 2010.

AIG wants the Obama administration to clear the bonuses, or overrule them, following the public outrage over $165 million paid in bonuses to top corporate executives at AIG earlier this year.

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