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Ex-AIG bosses repay bonuses
Bill Condie12 Sep 2008
The former head of insurance giant American International Group (AIG), Hank Greenberg, and three other ex-executives have agreed to a $115 million (£65.6 million) settlement of claims that they were overpaid by the firm.
Greenberg's company, CV Starr & Co, gave the men bonuses based on fees from New York-based AIG, according to a Louisiana pension fund that has been suing the firm and the men.
Greenberg, 83, stepped down as AIG's chief executive officer in March 2005 amid accounting probes that led to a $3.4 billion restatement
of profits.
The Teachers' Retirement System of Louisiana claimed that almost half of the $2.2 billion that AIG paid to Starr from 2000 to 2005 represented sham commissions and fees for work that, in some cases, was done by AIG employees.
Reader views (1)
What about the 2.7 billion bonuses paid at Lehman in '07 -- and the exiting AIG CEO is getting a 9m US$ package...
And we wonder why these companies were in trouble?
- Robert Steven Williams, westport, usa, 20/09/2008 13:46
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