AIG Cut Salaries for Top Executives
The US insurance giant American International Group (AIG) has cut salaries for top officials and executives. The salaries were chopped back after extreme pressure from the Obama administration. The company has received three administration bailouts totaling $270 billion since 2008, and has made a further request for another $30 billion.
On the other hand, senior management of the group said the administration will have no say in multi-million dollar bonuses to be paid for last year. Because the Treasury Department determined that the administration did not have the legal authority to block the current payments by the AIG. The amounts of payment are part of a larger total payout allegedly valued at $450 million. The company declared earlier the running month that it had suffered a loss of $61.7 billion for the fourth quarter of 2008. It was the largest corporate loss in history.
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