AIG 2008 performance bonuses higher than reported
It has emerged that insurance giant, AIG, paid out some $454 million (£300 million) in performance bonuses for 2008.
The figure is almost four times than the company disclosed back in March with payments ranging from an average of $5,403 to employees of its property-casualty group, to over $50,000 on average for staff in its asset management division.
The revelation emerged after the company was subject to questioning by a US lawmaker.
AIG told Representative Elijah Cummings, a Maryland Democrat, that the bonuses were paid out to employees in over 100 countries.
The company has already been subject to criticism for awarding $165 million in retention bonuses following a Government bailout of $180 billion. However, some of the retention bonuses were returned by staff following public outrage.
Commenting on the disclosure of bonuses, Cummings said: “I simply cannot fathom why this company continues to erode the trust of the public and the US Congress, rather than being forthcoming about these issues from the start.”
AIG had to be rescued by the US Government just days after the collapse of Wall Street giant, Lehman Brothers, last September.
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what is faxless? :)