But lawyers warn employees will sue for their bonuses

AIG paid out $46m to about 70 mostly former executives who had agreed to stay on to help wind down the group's book of credit derivatives, the FT reports.

It withheld $21m in bonuses from those employees who had income from other sources.

AIG paid out about $100m last month to some 200 employees after they had agreed to reduce their bonuses by at least 10 per cent. Yesterday's pay-outs went to those former and current employees who did not take last month's deal.

Employees to sue

Reuters said several of those employees might sue AIG their lawyers said.

Gary Phelan, a partner at law firm Outten & Golden, which represents eight current and former employees said: "They've had several months to determine whether or not any payment should be offset."

"Unless there's a very quick payment made of the balance 25 percent, I think (a lawsuit) is inevitable."

Andrew Goodstadt, a partner at Thompson Wigdor & Gilly, which is representing about a dozen current and former employees, said they were also considering all options.

AIG declined to comment.

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