AIG bites the hand that feeds
Fifteen of AIG Financial Products’ top 20 executives have handed back their bonuses and another has resigned as AIG sues the US Government to try to remain solvent.
AIG is suing the Government to reclaim $US306 million ($437 million) in taxes, plus interest. The lawsuit relates to $US62 million ($88 million) in foreign tax credits and $US244 million ($349 million) in net operating and capital loss carry-backs and refund claims.
New York Attorney-General Andrew Cuomo has been leading a popular campaign to force AIG executives to return bonuses. He says that of the $US165 million ($236 million) awarded, employees have agreed to return about $US50 million ($71 million).
“I would like to say this to the individuals who have given the money back – you have done the right thing,” he said. “We are living in a new era of corporate and individual responsibility. I thank you for setting an example for the rest of the company.”
AIG Financial Products VP Jake DeSantis last week published his resignation letter to CEO Edward Liddy in the New York Times.
“I was in no way involved in – or responsible for – the credit default swap transactions that have hamstrung AIG,” he said. “Nor were more than a handful of the 400 current employees of AIG-FP. Most of those responsible have left the company and have conspicuously escaped the public outrage.
“After 12 months of hard work dismantling the company – during which AIG reassured us many times we would be rewarded in March 2009 – we in the financial products unit have been betrayed by AIG and are being unfairly persecuted by elected officials.”
Mr DeSantis, who had agreed to work for an annual salary of $US1 ($1.42) after AIG hit trouble last year, says he will donate his entire post-tax retention payment “to those suffering from the global economic downturn”.
AIG is suing the Government to reclaim $US306 million ($437 million) in taxes, plus interest. The lawsuit relates to $US62 million ($88 million) in foreign tax credits and $US244 million ($349 million) in net operating and capital loss carry-backs and refund claims.
New York Attorney-General Andrew Cuomo has been leading a popular campaign to force AIG executives to return bonuses. He says that of the $US165 million ($236 million) awarded, employees have agreed to return about $US50 million ($71 million).
“I would like to say this to the individuals who have given the money back – you have done the right thing,” he said. “We are living in a new era of corporate and individual responsibility. I thank you for setting an example for the rest of the company.”
AIG Financial Products VP Jake DeSantis last week published his resignation letter to CEO Edward Liddy in the New York Times.
“I was in no way involved in – or responsible for – the credit default swap transactions that have hamstrung AIG,” he said. “Nor were more than a handful of the 400 current employees of AIG-FP. Most of those responsible have left the company and have conspicuously escaped the public outrage.
“After 12 months of hard work dismantling the company – during which AIG reassured us many times we would be rewarded in March 2009 – we in the financial products unit have been betrayed by AIG and are being unfairly persecuted by elected officials.”
Mr DeSantis, who had agreed to work for an annual salary of $US1 ($1.42) after AIG hit trouble last year, says he will donate his entire post-tax retention payment “to those suffering from the global economic downturn”.