AIG, says pay issue is 'largely' solved

[The Straight Story]

AIG, says pay issue is 'largely' solved

NEW YORK, Feb. 3 (UPI) -- U.S. insurance giant American International Group Inc. said it would reduce bonus payments by $20 million to recoup part of a pledge it failed to keep.

After receiving billions of dollars in taxpayer bailout funds, AIG's bonus pay plan of $165 million a year ago sparked an uproar in Washington. At that point, employees -- notably those in the financial product division that lost billions of dollars on credit default swaps -- agreed to return $45 million of their bonus pay, The Wall Street Journal reported Wednesday.

But employees only returned $19 million.

This year, with $195 million in the bonus pool, the company said it had secured an agreement with current and former employees to reduce that by $20 million. AIG also said it would work to recoup another $6 million.

A spokesperson for the Treasury Department said the department is "encouraged that AIG employees are making good on the repayment pledges they made last spring."

http://www.upi.com/Business_News/2010/02/03/AIG-says-pay-issue-is-largely-solved/UPI-88971265227362/