March 27 American International Group,
the insurer whose government bailout was marked by controversy
over executive salaries, on Wednesday said its board adopted a
clawback policy to recover compensation in case of mistakes or
In a regulatory filing, AIG said its board adopted the
policy last week "to encourage sound risk management and
The policy provides a mechanism to pull back bonuses and
equity awards from executives for at least the one-year period
prior to any event that triggers a clawback. Among those
triggering events are a financial restatement, failures of risk
management or acts that hurt the company's reputation.
AIG received a bailout in September 2008 while on the brink
of bankruptcy. Its rescue ultimately totaled $182 billion, all
of which the government recouped, plus interest.
During the course of that bailout, executive compensation
was a huge sticking point. Protests broke out in early 2009
after certain executives received millions of dollars in bonuses
following the rescue.
At one point, the U.S. Congress considered legislation to
claw back those bonuses, though it never became law.