Tuesday, March 24, 2009

Top AIG bosses 'to repay bonuses'.

Well, well... Miracles happen and the shameless can be shamed into doing the right thing:

Nine of the 10 executives who received top bonuses from US insurance giant AIG have agreed to return them, New York's attorney general says. Andrew Cuomo said he hoped to recoup $80m (£55m) of bonus payments - which amounts to about half of the $165 million paid by AIG on 15 March.
Maybe the threat to tax them at 90% finally made them see just how angry most people were about this outrageous attempt on their part to take a bonus for essentially failing.

Mr Cuomo said 15 of AIG's top 20 bonus recipients had agreed to return their payments, which he estimated to total around $30m.

"A number of them have risen to the occasion and I applaud them," Mr Cuomo - who is investigating AIG as well as several other financial institutions - said of the executives who had offered to give up their bonuses.

He added that he expected to recoup all of the bonuses paid to American citizens working for AIG, which accounts for around half the $165m the company paid out.

Mr Cuomo said he did not plan to release the names of the employees who have agreed to return the bonuses, suggesting there was no implied threat that if an employee refused to return their bonus, their name would be disclosed.

Cuomo's a better man than I am, as I would be very tempted to name the people who want to take bonus money from what is essentially the public purse at this time.

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2 comments:

Anonymous said...

I don't know that it was the tax that scared them straight. I think it more likely was the spotlight. With the pitchfork wielding mob on one side and the IRS on the other, I think anonymity suddenly seemed far more desirable than a bonus.

Kel said...

I think you are right SP, the anger of the mob finally made them see sense.