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A.I.G. Prepares More Bonuses for Top Executives

by: Brady Dennis and David Cho  |  The Los Angeles Times

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A.I.G. boss Edward Liddy prepares to testify before Congress with protesters from Code Pink in the background. (Photo: Walsh / AP)

    The payments would be much smaller than those that angered Americans in March, but A.I.G. and Obama officials still see them as a minefield.

    Washington - American International Group Inc. is preparing to pay millions of dollars more in bonuses to several dozen of its top executives after an earlier round of payments set off a national furor.

    The payments being considered are much smaller than the $165 million in so-called retention bonuses whose disclosure in March angered lawmakers and the public and threatened to undermine the government's effort to rescue the financial system.

    Still, officials at AIG and in the Obama administration see the pending bonuses as a land mine. The insurer has been pressing the government's new "compensation czar" to bless the payments to shield itself from renewed public outrage.

    The company doesn't actually need the permission of Kenneth Feinberg, whom President Obama appointed last month to oversee the compensation of top executives at seven firms that have received large federal bailouts. But officials at the troubled insurance giant, whose federal rescue package stands at $180 billion, have been reluctant to move forward without political cover from the government.

    "Any time we write a check to anybody" it is highly scrutinized, one AIG official said. "We would want to feel comfortable that the government is comfortable with what we are doing."

    The payments coming due next week include $2.4 million for about 40 high-ranking AIG corporate executives, according to administration documents from earlier this year. The exact amount may have changed since then.

    Feinberg, who managed the government's efforts to compensate the families of those killed in the Sept. 11 attacks, has the power to determine salaries, bonuses and retirement packages for top executives at firms such as Citigroup Inc., Bank of America Corp., General Motors Corp. and AIG.

    But the pending AIG bonuses fall outside his official purview because they were delayed from 2008. The Treasury Department declined to comment on the bonuses. Feinberg didn't respond to an e-mail seeking comment.

    Of the $165 million in bonuses that caused the upheaval in March, employees vowed to return more than $50 million. But that didn't stop lawmakers from proposing to levy harsh taxes on bailout recipients paying executive bonuses.

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    Dennis and Cho write for the Washington Post.

  

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Greed - the gift that keeps

Greed - the gift that keeps on giving. We said enough is enough, what now?

I don't know if they really

I don't know if they really are deserving of bonuses, but here's an idea. Since there was $165 million in 'retention' bonuses given to "key" people and "team players", let Kenneth Feinberg (the compensation czar) order those recipients to pay out the $2.4 million bonuses and taxes from the bonus money they received. No need for political cover (which in itself does not make it the RIGHT thing to do) or shielding from public outrage. They can do what they want with THEIR money. Let them show the current administration and us people exactly why they were retained. If THEY do not feel that the new bonuses are justified, there is no need to pay them... or any need to have the inept Congress get involved.

You ask, "now what?" I'll

You ask, "now what?" I'll tell ya what: express your opinion to the white house (whitehouse.gov contact form) and to your congress persons (house.gov). We won't stand for any more corporate fascism, we will sweep cronies of corporate fascism from office, all of them! YOU have to communicate this so that the voices ring in the millions, else, they will smile, and laugh, all the way to the bank.

you don't get it or accept

you don't get it or accept it , do you? no, I think not, to get it and to accpet it means a 20 million person march on Washington. It means the non-cooperation of the masses in the corporate fascist project. Gandhi would approve, King would approve, what does it take for us to move?