Speaking of pure Oinkers…
AIG Should Reveal Extent of Bonuses, Cummings Says (Update2)
By Hugh Son and Erik Holm
Dec. 16 (Bloomberg) — American International Group Inc. Chief Executive Officer Edward Liddy may face a congressional hearing to explain “the full extent” of the insurer’s plan to give bonuses to as many as 7,000 people so they won’t quit.
Liddy should testify under oath on why retention payments are going to thousands more people than first disclosed, according to a letter today from Representative Elijah Cummings of the House Committee on Oversight and Government Reform. He cited a Bloomberg News report that says AIG will give as much as a year’s pay to about 10 percent of the staff at units that are being sold. Recipients were told to keep the awards secret.
Hearings may put new pressure on AIG to detail why managers will get as much as $4 million after the company accepted a taxpayer-funded bailout now valued at about $150 billion and promised to curtail pay. Cummings is asking AIG to tell Congress the scope of its retention efforts, originally described as covering only 130 executives.
“It is critical that the committee seek to understand whether AIG has revealed the full extent of its compensation policies,” wrote Cummings, a Maryland Democrat.