AIG CEO Asked Execs to Return Bonuses Over $100K

AIG CEO Edward Liddy was in the hot seat today, testifying in front of the House Financial Services Committee, and revealed that he had asked some employees to return their controversial bonuses, "Specifically, I have asked those who received retention payments of $100,000 or more to return at least half of those payments." According to the NY Times, "The A.I.G. chief said that some recipients had already offered to give up all of their bonuses, and he added later that he expected to get most of the money back."

Outrage grew earlier this week when it was reported that AIG was going ahead wtih $165 million in bonus payments—claiming legal obligations and that bonuses were important to retain employees—even after reporting a $60 billion quarterly loss and requiring $170 billion in government rescue funds (last fall, the Federal Reserve determined AIG's collapse would cause havoc in financial markets). NY Attorney General Andrew Cuomo pointed out that 73 of the 418 bonus-receiving employees got bonuses of over $1 million (one received $6.4 million and 6 employees received bonuses of more than $4 million) and that 11 employees no longer work there.

Today, Liddy said the some employees "will return it, but they will return it with their resignations." Here's video of Liddy's statement today:

Cuomo responded to Liddy's statements today, "AIG's proposal to ask their bonus recipients to voluntarily give back half is simply too little too late...Rather than take half-measures, AIG should immediately turn over the list, which we have subpoenaed, of who got what and when." And the GOP is taking advantage of the outrage—Senate Minority Leader Mitch McConnell said the bonuses were "an offense to the taxpayers, and we're going to get to the bottom of it, even if the Department of the Treasury hasn't"—but President Obama has voiced support of Treasury Secretary Timothy Geithner. However, Senator Christoper Dodd justtold CNN he added language to the stimulus bill to keep the bonuses in place at the request of the Obama administration.