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AIG freeze on payout for boss
Hugo Duncan, Evening Standard23.10.08
American International Group (AIG), the insurance giant rescued by US taxpayers in an emergency bailout last month, is to freeze a $19 million (£11.5 million) payout to former chief executive Martin Sullivan.
Essex-born Sullivan was awarded the sum in bonuses and severence payments after being forced to step down from his post in June, weeks before the $85 billion rescue.
But New York attorney general Andrew Cuomo said AIG has agreed to freeze the payments as well as about $600 million due to executives of AIG Financial Products, whose losses caused the group's collapse.
AIG last week agreed to help recover any improper payments made to senior management as part of an investigation by Cuomo, who said that "until taxpayers are repaid with interest...no funds should be paid out".
