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AIG Chief Asks Execs to Give Back Money

By M. Morris,  Newser Staff

Posted Mar 18, 2009 12:54 PM CDT
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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."

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.
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)
AIG Chairman Edward Liddy looks over this papers during a break in his testimony Wednesday, March 18, 2009, before a House subcommittee.
AIG Chairman Edward Liddy looks over this papers during a break in his testimony Wednesday, March 18, 2009, before a House subcommittee.   (AP Photo/Susan Walsh)
AIG chairman Edward Liddy testifies on Capitol Hill in Washington, Wednesday, March 18, 2009, before the House Capital Markets, Insurance and Government Sponsored Enterprises subcommittee.
AIG chairman Edward Liddy testifies on Capitol Hill in Washington, Wednesday, March 18, 2009, before the House Capital Markets, Insurance and Government Sponsored Enterprises subcommittee.   (AP Photo/Susan Walsh)
AIG Chairman Edward Liddy arrives on Capitol Hill in Washington, Wednesday, March 18, 2009, to testify before the House Capital Markets, Insurance and Government Sponsored Enterprises subcommittee.
AIG Chairman Edward Liddy arrives on Capitol Hill in Washington, Wednesday, March 18, 2009, to testify before the House Capital Markets, Insurance and Government Sponsored Enterprises subcommittee.   (AP Photo/J. Scott Applewhite)
A crowd lines up waiting to enter a committee room on Capitol Hill Wednesday, March 18, 2009, to hear testimony from AIG CEO Edward Liddy testify before a House subcommittee.
A crowd lines up waiting to enter a committee room on Capitol Hill Wednesday, March 18, 2009, to hear testimony from AIG CEO Edward Liddy testify before a House subcommittee.   (AP Photo/J. Scott Applewhite)
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COMMENTS
Showing 3 of 3 comments
Guest
Mar 19, 2009 12:51 AM CDT
50% means Liddy doesn't get it.And they were afraid of lawsuits? With the automakers asking workers to sacrifice and so much anger over other bonuses, they should have let those employees sue and explain their JOB performance over the last few years. And what? They're going to go give out AIG secrets? Please send them to AIG's competitors. Maybe they'll end up in AIG's boat. Ha!
NewserHound
Mar 18, 2009 3:45 AM CDT
Yes it is quite entertaining... Too bad it is all on our dime! I am thoroughly convinced that it is because of kickbacks - from AIG into politicians pockets - that have enabled them to get a bailout and keep their doors open. Why else would Washington do this to us but to line their own pockets?
Guest
Mar 18, 2009 2:52 AM CDT
Please forgive me but I think this whole AIG thing is so funny. Ever watch a bunch of monkeys in their cages at the zoo, the bickering, pecking, strutting, domineering, squaling, I mean it is so funny.

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