Page last updated at 16:44 GMT, Wednesday, 3 February 2010

'Outrageous' AIG bonuses attacked

Kenneth Feinberg
Kenneth Feinberg scrutinises executive bonuses at bailed out firms

President Obama's pay czar has called AIG's expected latest round of bonus payments "outrageous".

The comments of Kenneth Feinburg come as reports say the insurance giant will later on Tuesday pay out $100m (£63m) to its financial products division.

He said these bonuses were the result of old contracts, but by March they would be "a thing of the past".

AIG was bailed out with $182.3bn of US aid in 2008, and staff have already given back $39m of earlier bonuses.

Mr Feinberg is "insisting" that AIG workers repay a further $6.7m to $7m of previous bonus payments.

Senior Republican Senator Charles Grassley argued that the US administration had been outmanoeuvred and "AIG has taxpayers over a barrel".

Mr Feinberg oversees the pay deals of senior bosses at banks and other financial groups who have received financial support from the US government under the Troubled Asset Relief Program (Tarp).

His formal job title is special master for Tarp executive compensation.

Print Sponsor

US extends executive pay limits
11 Dec 09 |  Business
NY Fed 'paid AIG banks too much'
17 Nov 09 |  Business
Matt Frei's diary: Battle of the bonus
22 Oct 09 |  World News America
Obama hails companies' pay cuts
22 Oct 09 |  Business
AIG posts first profit since 2007
07 Aug 09 |  Business

The BBC is not responsible for the content of external internet sites

Has China's housing bubble burst?
How the world's oldest clove tree defied an empire
Why Royal Ballet principal Sergei Polunin quit


Americas Africa Europe Middle East South Asia Asia Pacific