Posted: Feb 3, 2010 7:04 AM by Bea Karnes, News First 5
Updated: Feb 3, 2010 7:04 AM
Reports say American International Group Inc. is about to pay about $100 million in a fresh round of bonuses to employees of its financial products division. That's the unit whose risky bets helped sink the company leading to a $180 billion government bailout.
The New York Times reports although AIG agreed to cut the retention bonuses by $20 million, it will still hand out $100 million Wednesday.
The Washington Post reports the retention payments are for employees at the division who agreed to accept 10 to 20 percent less than AIG had initially promised them two years ago. In return, they are getting their money more than a month ahead of schedule.
The Post says AIG is still due to pay out tens of millions of dollars more in March, mostly to former employees who did not agree to the concessions.