MONEY AND WORK

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May 6, 2009

AIG BONUSES 2.5 TIMES MORE THAN STATED

Matthew Jaffe, ABC - AIG, the recipient of approximately $180 billion in government bailout aid, paid out over $454 million in bonuses company-wide in 2008, according to documents that the company submitted to Congress. The embattled insurance company, which ignited a heated controversy in March for dishing out $165 million in retention payments to employees in its troubled Financial Products division, revealed the bonuses in response to written questions from Rep. Elijah Cummings, D-Md.

The $454 million number is now the third different figure that AIG has disclosed for its 2008 bonuses, with each number far larger than the previous one.

On March 18, AIG CEO Edward Liddy told Cummings at the conclusion of a House Financial Services subcommittee hearing that AIG had paid out around $9 million in corporate bonuses in 2008.

"How much in bonuses -- not retention payments -- have you paid to AIG employees in 2008 and what was the range of bonuses paid?" Cummings asked Liddy.

"I'll provide you the information. I think it might have been in the range of $9 million," Liddy replied.

However, just two days later, Politico reported that AIG had revealed that they paid out $120 million to over 6,000 employees, a number confirmed at the time by an AIG spokesman.

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