AIG Employees Accept Bonus Cut For Early Bonus (AIG)
According to the Wall Street Journal, employees of American International Group Inc (NYSE: AIG) have accepted cuts in retention bonuses with the understanding that these bonuses will be advanced to the first week of February. The bonuses were earlier scheduled to be paid out in March.
The company had to take this measure based on requests made by Kenneth Feinberg, the US pay czar (Special Master for TARP Executive Compensation) to cut down on the kitty of $195 million in bonuses due in March and also to recoup $26 million of payouts of last year. AIG asked its employees if they were okay with 10% cut in bonuses and 95% of the employees agreed, with an agreement that discounted bonuses would be paid out by Feb 5. These agreements to lower bonuses were totally voluntary.
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