So, remember those bonuses everyone was so mad about? Well, it turns out that they were bigger than originally disclosed. A lot bigger.
Responding to detailed questions from Rep. Elijah Cummings, AIG disclosed a new figure for its employee bonus pool — $454 million for 2008.
“I was shocked to see that the number has nearly quadrupled this time,” said Cummings. “I simply cannot fathom why this company continues to erode the trust of the public and the U.S. Congress, rather than being forthcoming about these issues from the start.”
POLITICO says that the last time they asked AIG about the total bonuses (which are different from and in addition to retention payments), they were given a figure of $120 million.
On March 19th, POLITICO asked AIG in an e-mail, “What was AIG’s total bonus pool (outside the retention agreements) for 2008?” To that, after some back and forth, AIG offered the $120 million figure.
Later in March, Congressman Cummings submitted written questions to AIG, asking: “Please specify the exact amount in bonuses – not retention payments or any other form of compensation – paid by AIG to employees of any division of AIG in 2008 or paid in 2009 for work performed in 2008.”
To that question, AIG disclosed a division by division breakdown of payments totaling $454 million.
AIG spokesman Ashooh said the company’s revised accounting is the result of different wording of the questions asked by Cummings and POLITICO.
Just in time for the next round of Worst Company in America.