Fifteen of the top 20 bonus recipients at American International Group Inc. have agreed to return their money following a firestorm of criticism and some arm-twisting from New York’s Attorney-General.
In total, AIG employees have agreed to return about $50 million of the $165 million in bonuses awarded earlier this month by the troubled insurer, New York Attorney-General Andrew Cuomo’s office said on Monday. Mr. Cuomo said he still hoped more AIG employees would return their bonuses. At most, Mr. Cuomo said his office could hope to recoup $80 million of the bonuses — roughly the amount paid out to American employees.
“I applaud the employees who are returning the bonuses,” said Mr. Cuomo. “I think they are being responsive to the American people.”
Mr. Cuomo said nine of the 10 people receiving the largest awards had agreed to return their bonus. Some others had refused to return the money, while others were still considering it. AIG has come under heavy criticism because the bonuses were given to employees after the company received $170 billion in government bailout money. About 400 employees and future employees in AIG’s financial products division received bonuses. Documents provided by AIG to the Treasury Department said the awards ranged from $1,000 to nearly $6.5 million. Seven employees were to receive more than $3 million.
