| AIG retaining $21 million in bonuses |
| News - Financial News |
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AIG said Monday that it would retain $21 million in bonus payments to former employees, according to an AIG spokesman.
Last month, AIG said that 97% of active employees of the Financial Products division, along with many former employees had agreed to the bonus cuts. Monday also marks the day that AIG (AIG, Fortune 500) is slated to pay out $46 million to current and former employees of the Financial Products division. The hold-back is in addition to the $45 million that, back in September, those employees said they would return. After public furor over the bonuses erupted in the spring of 2009, AIG asked employees to voluntarily reduce the value of their scheduled bonus payments. Though the cuts were voluntary, AIG reportedly told employees they would not receive their bonuses if they did not accept a haircut. As part of its wider effort to repay its $182 billion payout, the troubled insurer announced last week that it would sell foreign life insurance business Alico to MetLife for $15.5 billion and Asian life insurance giant AIA for $35.5 billion. 
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