AIG cuts payouts to seven

AIG has cut payments to seven senior executives the company has announced to regulators.

AIG, which is getting $152bn (£101bn) of US taxpayers' money, will not pay $3m (£2m) in deferred compensation that the executives were expecting to be paid by April.

In a filing with the US Securities and Exchange Commission, AIG said it would pay about $273.5m (£182m) to more than 4,000 current, non-senior employees who took part in the retirement plans that allowed funds to be set aside and drawn upon in later years.

The seven senior executives who will not receive the disbursements that had been expecting by April include Jay Wintrob, head off AIG's life operations. He had been due about $1.9m, according to November figures. Wintrob received $7.5m in salary, bonus, incentives and stock and options awards in 2007, Reuters reports.

David Herzog, the company's recently appointed chief financial officer, was to have received about $371,000 by April.

Five others, including investment executive Win Neuger, were due $800,000 under the plan, AIG said.

In addition to senior executives, former employees and agents will also not receive accelerated payments, AIG said. The total that was to have been paid to these individuals was $90.3m.