WASHINGTON May 5 Embattled insurer American
International Group (AIG.N) paid some $454 million in
previously undisclosed performance bonuses to employees for
2008, the company said in answers to questions from a U.S.
lawmaker that released on Tuesday.
AIG was widely criticized for paying out some $165 million
in retention bonuses after it received some $180 billion in
government bailout aid. Some of the retention bonuses were
returned by employees after the firestorm of criticism.
The company told Representative Elijah Cummings, a Maryland
Democrat, the performance bonuses were paid out by operating
units, across the company's operations in some 120 countries.
Payments ranged from an average of $5,403 to employees of
its property-casualty group, to $51,026 on average for those in
its asset management group.
The payments are in addition to an about $120 million
corporate bonus pool designated for holding company employees
and executives at subsidiary companies.
The performance bonus plans for the various AIG units were
set before the company teetered on the brink of bankruptcy,
forcing them to take government aid last September.
The payments are separate from $1 billion in retention
payments to entice employees to stay with the company.
The company also told Cummings AIG's bonus plans for 2009
were under development, "in consultation with the Federal
Reserve and Treasury."
(Reporting by Jeremy Pelofsky in Washington and Lilla Zuill in
New York, Editing by Andre Grenon)