AIG yanks $93 million in quickie payouts after Dems squawk

AIG yanks $93 million in quickie payouts after Dems squawk

Insurer said accelerated pay would help retain employees, but lawmakers claim bulk of money earmarked for ex-workers

January 8, 2009 1:06 PM ET


American International Group deferred $93.3 million in questionable payouts to senior executives and former employees and agents following the intercession of two Democratic lawmakers.

The lawmakers, Reps. Paul Kanjorski (D-Pa.) and Joseph Crowley (D-NY), criticized the Treasury Department and Federal Reserve for approving the payments. The insurer is due to receive $150 billion under the federal bailout.

The employee payouts were to be made by April 1 after deferred compensation plans were terminated by the insurer, AIG said in a statement yesterday.

Instead, only current employees and agents will now get the money in the next few months, while the others will have to wait until after they retire or leave the company, the statement said.

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