Posted on 18 Mar 2009
AIG CEO and Chairman Edward Liddy testifying today at a congressional hearing is saying that he has asked employees receiving more than $100,000 in bonuses to repay at least half. This is amid widespread public outrage to a payment by the insurer of $165 million in bonuses.
"Americans are asking quite simply, why pay these people anything at all," Liddy told a House of Representatives subcommittee. "Here's why: I am trying desperately to prevent an uncontrolled collapse of that business."
Liddy said some employees had already given back their entire bonuses. Others who had received retention bonuses had since left the company.
Liddy said the payouts were necessary to retain top employees with the specialized knowledge to dispose of $2.7 trillion in complex securities that ended up dragging the company to the brink of collapse last year.