Liddy’s letter didn’t mention any cuts in retention payments at other business units. In addition to the financial products unit, AIG planned to award US$148 million to top executives and about US$470 million for three other subsidiaries, a person familiar with the plans and company documents said. An AIG filing on March 2 confirmed a Bloomberg report that all its employee retention plans might cost US$1 billion.
The retention payments have drawn criticism from US lawmakers who objected to giving millions of dollars to employees who may have helped deepen the credit crisis.
US Representative Elijah Cummings has said AIG showed a “pattern of deception” in its disclosures and Representative Brad Sherman asked during a December hearing whether AIG’s retention payments were appropriate for executives who “are part of the team that ran the company into the ground.”
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