AIG pays to keep staff
AIG will pay employees $US500 million ($780 million) of earned but deferred pay under a voluntary salary plan to keep them from quitting the company.
The global insurer says it will terminate 14 voluntary “deferred compensation” plans and distribute the pay to the 5600 employees in the first quarter of next year.
Under AIG’s pay plans, employees can only access deferred pay when they retire or leave the company. This move would “remove the incentive for employees to leave in order to obtain their deferred pay”, Human Resources Vice President Andrew Kaslow said.
AIG has been under the gun in the US for spending up big on employee events and at the same time having key staff poached by competitors.
Last week New York Attorney-General Andrew Cuomo lashed out at AIG in a letter to CEO Edward Liddy, claiming the company needs to be “completely transparent with taxpayers” about its pay plans.
He says AIG’s demise has seriously hurt investors and taxpayers, who have sunk billions into the company to keep it afloat.
“It thus seems hard to imagine that AIG could pay significant bonuses or give raises to its executives after the company has been quite literally bailed out by the American taxpayer,” he said.
The global insurer says it will terminate 14 voluntary “deferred compensation” plans and distribute the pay to the 5600 employees in the first quarter of next year.
Under AIG’s pay plans, employees can only access deferred pay when they retire or leave the company. This move would “remove the incentive for employees to leave in order to obtain their deferred pay”, Human Resources Vice President Andrew Kaslow said.
AIG has been under the gun in the US for spending up big on employee events and at the same time having key staff poached by competitors.
Last week New York Attorney-General Andrew Cuomo lashed out at AIG in a letter to CEO Edward Liddy, claiming the company needs to be “completely transparent with taxpayers” about its pay plans.
He says AIG’s demise has seriously hurt investors and taxpayers, who have sunk billions into the company to keep it afloat.
“It thus seems hard to imagine that AIG could pay significant bonuses or give raises to its executives after the company has been quite literally bailed out by the American taxpayer,” he said.