The Treasury Department's pay czar Kenneth Feinberg has told American International Group Inc. (NYSE:AIG) that the $198 million the company plans to put toward retention payments needs to be reduced.
Surprised? Not really, right? Especially after the controversy to try to recover around $45 million out of the $168 million in retention payments made to AIG employees in March. Only
$19 million was actually recovered, according to Special Inspector General Neil Barofsky.
The Wall Street Journal found out those payments ranged though:
Individual payouts from the $168 million handed out in March ranged from $700 for a file administrator to more than $4 million for one executive vice president, investigators found. Approximately 62% of employees in the financial products division received a retention award of more than $100,000, though some employees -- such as a kitchen assistant who received $7,700 -- received much less.
The kitchen assistant is likely to receive much less, according to
The Wall Street Journal. Feinberg has not specified the amount the payments should be reduced by, but AIG management is trying to cut them down by 30%.
And Feinberg is just getting started. He's also reviewing the compensation plans for several other banks that have not paid back TARP or accepted government bailout funds such as Bank of America Corp.(NYSE:BAC) and Citigroup Inc. (NYSE:C). -
Maria Woehr
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