Cuts to staff bonuses achieved US government-set target
US pay czar Kenneth Feinberg, told Fox Business Network that American AIG has recouped $45m in retention bonuses that the US government demanded be returned by employees, Dow Jones reports.
"It's history," Feinberg said. "AIG has sought and recovered the $45m in bonus pledges that were promised by those employees to be repaid to the taxpayer."
"Congress decided that since the American people saved these companies and are the chief creditors of these companies, they have a right to have a say, in just these five companies in individual compensation.
"It appears from what I have read as a private citizen that TARP worked," he told Fox Business. "It was necessary. It saved us from something much worse, and now the question is can we gradually evolve out of that type of government subsidization and let the free market do its will."
