CBSNews says that AIG will be suspending “bonuses” for executives and will instead replace them with “retention payments.” We’re not entire sure what the difference is and the government doesn’t know either.
On Wednesday, lawmakers grilled Assistant Treasury Secretary Neel Kashkari about AIG’s bonus plan. Rep. Donald Manzullo, R-Ill., asked if a $3 million bonus was too much.
“It is excessive for a failing institution, yes,” said Kashkari.
But so far, no one’s stopping AIG from paying millions to some employees in its new retention program. The company has told 168 employees they’ll receive between $92,500 and $4 million per individual if they stay with the company for one year. That angers some on Capitol Hill.
“These so-called retention payments are nothing less than bonuses,” Rep. Elijah E. Cummings, D-Md., told CBS News. He sent letters to AIG, demanding details of the retention program.
Cummings went on to say that no one is indispensable when there are thousands of qualified people out of work on Wall Street. AIG responded that the payments were not “popular” but they were necessary to keep the business together so that they could eventually pay back taxpayers.
After Rescue, Bonuses Still Flow At AIG [CBSNews]