15 AIG employees return bonuses worth $30M
New York Attorney General Andrew Cuomo says 15 employees who received some of the largest bonuses from American International Group have agreed to return more than $30 million US worth of payments.
In total, AIG employees have agreed to return about $50 million US of the $165 million US in bonuses awarded this month by the troubled insurer, Cuomo's office said.
Cuomo said he still hopes that more AIG employees will return their bonuses. He expects his office will be able to recoup roughly $80 million US of the money the insurer paid out.
"I applaud the employees who are returning the bonuses," Cuomo said, during a conference call with reporters. "I think they are being responsive to the American people."
Nine of the 10 people receiving the largest awards have agreed to return their bonus, he said.
Additionally, 15 of the top 20 bonus recipients have consented to returning their money. Some have refused to return the money, while others are still considering it, Cuomo said.
Some AIG managers leave
Last week, AIG chief executive Edward Liddy told the U.S. Congress that some of the employees were going to give the money back.
AIG has come under heavy criticism because the bonuses were given to employees after the company, on the brink of failure, received $170 billion US in government bailout money.
But Liddy has expressed concern that the company may not be able to attract and retain talented employees if they believe their compensation is subject to adjustment by the Treasury.
AIG spokeswoman Christina Pretto said in an email to the Associated Press, "We are deeply gratified that a vast majority of Financial Products' senior leadership have expressed a willingness to forsake their recent retention payments."
She also said that a "handful" of senior-level executives have resigned from the financial products division, and that there will likely be more resignations to come.
Cuomo said he doesn't plan to release the names of the employees who agreed to return the bonuses, and said there is no implied threat that if an employee doesn't consent to returning the bonus that their name will be released.
Cuomo had sought the names of the employees who received bonuses from Liddy through a subpoena. He said his office is continuing to assess the security of the employees.
On Saturday, the attorney general of Connecticut revealed that the AIG bonuses might actually have added up $53 million US more than initially thought.
Richard Blumenthal said Saturday he has seen documents showing AIG paid $218 million US in bonuses, not $165 million US as previously disclosed.
Blumenthal said the higher number was tallied from documents that AIG turned over to his office late Friday after a subpoena was issued.