Morning:
13°c
AIG execs in London shun bonuses return
25.03.09
Top London executives at failed insurance giant American International Group (AIG) are among those refusing to hand back their 2008 bonuses.
New York Attorney General Andrew Cuomo has confirmed that many, if not all, the senior people who have so far failed to hand back their bonuses are based in London. He is now investigating whether the bonuses were paid fraudulently.
Cuomo yesterday said 15 of AIG's top 20 executives had agreed to hand back bonuses totalling $50 million (£34 million). He said he hoped to recover $80 million of bonus payments.
There is also growing pressure for executives who have so far refused to give up their awards to be named publicly. Cuomo appeared to promise anonymity to people who offered to pay back their bonuses.
But Connecticut Attorney General Richard Blumenthal has subpoenaed 14 AIG executives to testify at a hearing tomorrow.
Meanwhile, moves to tax bonuses at bailed-out financial firms in the US at 90% are said to be faltering.
Reader views (2)
It is a trend in the UK that most people get paid for things that haven’t been properly earned or contributed to, MP’s expenses, un-funded State employee pensions, Gordon Browns friends in banking amongst many. So why should anyone else give something back that some dumb-nut gave them for no real reason in the first place.
- Ian, Reading, England
Why not learn from the Americans! They are not often right but here they have understood the situation For those Companies who are only in business because of the Governments rescue package - impose an "emergency tax the bonuses of 90%.
- John, Edgware MIDDLESEX
