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AIG preparing to pay more bonuses: report

(Agencies)
Updated: 2009-07-10 11:12

WASHINGTON: American International Group is preparing to pay millions of dollars more in bonuses to several dozen top corporate executives, after an earlier round of payments set off a national furor, The Washington Post reported on Thursday.

The logo of American International Group (AIG) is seen at their offices in New York in this September 18, 2008 file photo. [Agencies]

The report said AIG has been pressing the US government to approve the payments in hopes of shielding itself from renewed public outrage.

AIG does not need the permission of Kenneth Feinberg, appointed last month to oversee the compensation of top executives at seven firms that have received large federal bailouts, the Post said.

But AIG officials have been reluctant to move forward without political cover from the government, according to the report.

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"Any time we write a check to anybody" it is highly scrutinized, an AIG official told the Post, speaking on condition of anonymity. "We would want to feel comfortable that the government is comfortable with what we are doing."

AIG's upcoming payments do not fall under Feinberg's official purview because they involve bonuses delayed from 2008, the article said.

As a result, some Treasury officials believe they are under no obligation to offer an advisory opinion in this case, which could leave company officials to decide the matter on their own, the Post said, citing a person familiar with the talks.