Article

2009-03-18 Home Front Economy

Bully Pulpit Works: AIG workers returning bonusses

For at least two values of bully.
The chief executive officer of failed insurance conglomerate AIG told lawmakers Wednesday that he has asked executives to give back at least half of their bonuses. Edward Libby, chairman and CEO of the American International Group, said that some workers there already have volunteered to return the money. Liddy said given the national uproar, he has asked those who got "retention payments" of more than $100,000 return at least half of it. AIG paid $220 million in retention bonuses to employees in its troubled financial products division. The most recent payment of $165 million began to be paid last Friday and caused a furor. The retention payments -- ranging from $1,000 to nearly $6.5 million -- were put together in early 2008, long before then-Treasury Secretary Henry Paulson asked Liddy to take over the company.

Testifying under oath at a congressional hearing, Liddy acknowledged that the company's multimillion-dollar bonuses were "distasteful" to many and had provoked a firestorm of wrath. Liddy was named six months ago to take over the company as part of the government rescue. Liddy, a former Allstate chief executive, is not getting a bonus and is only drawing $1 a year in salary. Some $170 billion in tax money has now been pledged to AIG.

Posted by trailing wife 2009-03-18 15:43|| || Front Page|| [11143 views ] Top

#1 HALF is NOT "Returning Bonuses".

Posted by Redneck Jim">Redneck Jim 2009-03-18 16:20|| 2009-03-18 16:20|| Front Page Top

#2 Unless they get a waiver from the IRS prior to the return of funds I'd think that anyone returning a portion of the bonus would technically (which will mean actually in this case) be liable for income taxes on 100% of the amount originally received.

Posted by AzCat 2009-03-18 17:56|| 2009-03-18 17:56|| Front Page Top

#3 let the scumbag politicians return the donations too: ie, Obama, Dobbs, et al.

Posted by HammerHead 2009-03-18 23:33|| 2009-03-18 23:33|| Front Page Top

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