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MONDAY, NOVEMBER 23, 2009
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4

Pay Czar Going After AIG Bonuses—Again

But legal hurdles loom for pre-bailout deals

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(Newser) – Pay czar Kenneth Feinberg is making another run at AIG’s bonus payouts—or trying to, with the help of a little arm twisting. Feinberg doesn’t have authority over the$198 million in bonuses promised to employees at the infamous trading unit because the contracts were created before the bailout. So instead, he’s threatening to slash the pay of other AIG executives, which he does control, if they don’t claw back the bonuses, the New York Times reports.

The bonuses are part of a two-year retention program begun in January 2008. A similar $165 million payout in March sparked a similar uproar, which AIG quelled by asking employees to pay back $45 million of it. But so far only $19 million has been returned; the TARP inspector general says some employees resigned rather than return the money.

Kenneth R. Feinberg speaks at his office in Washington, Aug. 15, 2009.
Kenneth R. Feinberg speaks at his office in Washington, Aug. 15, 2009.   (AP Photo/Charles Dharapak, File)
Kenneth R. Feinberg gestures in his office in Washington, Aug. 15, 2007.
Kenneth R. Feinberg gestures in his office in Washington, Aug. 15, 2007.   (AP Photo/Charles Dharapak, File)
In this March 19, 2009 file photo, a car speeds past the AIG sign, at AIG's financial products offices in Wilton, Conn.
In this March 19, 2009 file photo, a car speeds past the AIG sign, at AIG's financial products offices in Wilton, Conn.   (AP Photo/Stephen Chernin, File)
The AIG logo is shown in New York.
The AIG logo is shown in New York.   (AP Photo/Mark Lennihan, file)
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4 comments
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DJM420
Oct 14, 09 10:06 AM CDT
ONOZ a CZAR!! your know i really prefer the alt spelling...tsar. yep. i'm going with that. ONOZ a TSAR!! Reply
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wwwonderer
Oct 14, 09 2:37 PM CDT
"the TARP inspector general says some employees resigned rather than return the money." So let me get this str8. You claim that you needed to pay people the bonuses to retain them. And some of them took the money and left anyway? Ok. Reply
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UseReason
Oct 14, 09 3:48 PM CDT
The bonuses did not drive the employees away; the threat of the bonuses being taken back caused them to leave.
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SemperFI
Oct 14, 09 4:12 PM CDT
Be glad you have a job. Many Americans are out of a job and would gladly take your bonsuses. I dont mind small ones but when a line cook gets an $8000 bonsus for slinging hash. I become worried Reply
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