AIG to pay $503 million to top execs

by Chris Sturr | November 16, 2008

More good times at AIG, the failed insurance company that has (so far) received $152 billion in Federal bailout money.

After receiving endless grief about spending millions on lavish corporate retreats, executives have decided to take the more direct route and pay out an extra $503 million in corporate compensation to top executives.

According to the Washington Post

AIG’s plans to crack open its deferred compensation bank for payments early next year is conveyed in a two-sentence paragraph buried inside a quarterly financial report filed with the Securities and Exchange Commission on Monday. But some compensation experts and AIG stakeholders yesterday said they considered the exodus of $503 million in AIG money dubious at a time when the company is drenched in red ink. The company reported losses this week that brought total losses to $37.63 billion for the first nine months of the year.

In their defense, AIG officials said that the half-billion dollar payout was necessary to keep its top talent (you know, the people who’ve been doing such a great job with the company) from leaving. They also stress that the payouts won’t come from the taxpayer-funded bailout money. It will come from their secret stash of money hidden deep in a fortified bunker.

3 comments

Comments (3)

  1. Leaving to do what? Is any financial company *hiring* anyone? And does experience at AIG really help a c.v. at this point?

  2. Please change your headline to say 503 million (not billion!)And keep up the great work that you do here!

  3. While have of the country it’s stuggling this idiots get rewarded?? They all should be fire I’m sure that they will find a lot of people better thatn them that are willing to work for less. Their bonus should be to keep their job, nobody is hiring where would they go?? Amazing and we are paying for this!! This Christmas we are barely have a decent dinner while they dine caviar…..

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