AIG Chief Asks Execs to Give Back Money

By M. Morris,  Newser Staff
Posted Mar 18, 2009 12:54 PM CDT
Edward Liddy, chairman and chief executive officer of American International Group Inc., (AIG), speaks after a luncheon speech in Hong Kong Thursday, Dec. 11, 2008.    (AP Photo/Kin Cheung)
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(Newser) – AIG CEO Edward Liddy faced the music today, telling a House subcommittee he has asked employees who received generous bonuses to give at least half of the money up, and some have already agreed to do so. Liddy jousted with Barney Frank, who threatened to subpoena the company after Liddy refused to commit to releasing names of recipients, citing concerns for their safety, the Wall Street Journal reports.

Liddy blamed market conditions for the bailout-funded insurer's decision to distribute bonuses, saying, "Because of this, and because of certain legal obligations, AIG has recently made a set of compensation payments, some of which I find distasteful." Said Frank, referring to himself and other taxpayers, "We are the effective owners of this company. I think it’s worth trying."