Site last updated: Tuesday, October 13, 2026

Log In

Reset Password
Butler County's great daily newspaper

AIG seeks to pay out bonuses

After its bonus payments ignited a firestorm of criticism earlier this year, American International Group asked the federal government to weigh in on the insurer's plan to resume paying millions in promised retention incentives next week, according to media reports.

AIG, once the world's largest insurer, asked the Obama administration's compensation czar, Kenneth R. Feinberg, to approve the payments to head off any public outrage, The Washington Post reported Thursday evening.

While the company isn't required to get the government's blessing because the payments are actually for 2008 employment contracts, the newspaper said executives are reluctant to move forward with installments coming due next week without official approval.

Feinberg has the power to reject pay plans he deems excessive at companies which benefited from large infusions from the government's $700 billion bank bailout fund. Feinberg also has authority to review compensation for the top 100 salaried employees at those firms. AIG is among the companies whose pay practices the government now oversees.

Related Article: Frenemy, staycation join dictionary

More in Business

Subscribe to our Daily Newsletter

* indicates required
TODAY'S PHOTOS