Insurer obliged to pay $195m in bonuses at defunct division
AIG is exploring ways to repay $26m of the $45m in bonuses that executives at its financial products unit pledged to return last year, including a plan to cut 2010 bonuses but pay them out early, Reuters reports.
Bonuses could be paid early if staff agree to 15% cuts. By doing so, AIG -- which is obligated to pay out $195m in retention bonuses in March to AIG Financial Products employees -- would recoup the $26m needed to cover the shortfall.
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