AIG To Pay $46 Million In Bonuses (AIG)

American International Group (NYSE: AIG) is expected to pay $46 million in retention bonuses. The figure is 30% lower than previously announced. AIG (AIG) has slashed its bonuses by $21 million in an attempt to quell the public outrage against the payments. The controversial bonuses were granted a couple of months before the bailout of the insurer.

AIG is said to have found a valid reason for withholding $21 million worth of bonuses. According to its contract with the employees, AIG is entitled to reduce its bonus by the amount of any “outside income” made by the employees. Most of its ex-workers are now employed elsewhere and the company has asked them to declare their outside income.