AIG Employees Return Bonuses Amid Criticism
After being pressured by the Federal government, the American International Group (AIG) said its top executives returned the bonuses worth $165 million. A public outcry has also pressured the insurance company which received billion-dollar bailout package to keep its economy afloat.
Earlier, President Barack Obama ordered a salary cap for CEOs of bailed-out companies.
The American International Group (AIG), an insurance company which received billion-dollar bailout from the government, said its top executives returned the bonus worth $165 million amid public and government pressure.
During a press conference, President Barack Obama said that giving large pays and bonuses for AIG’s top executives is a case of inappropriate use of funds, adding that ordinary people should not pay for the “mess” the insurance company has done.
“The bonuses are completely outrageous given the fact that these are part of taxpayers’ money. But despite this incident, we should express our anger in a very constructive way”, Obama added.
While AIG’s executives has already returned the bonuses, Obama still urged the Congress to pass a legislation that will provide the government with more control and authority over the insurance company to make sure that it will spend wisely every cent it received from the bailout package.
Few months ago, along with other industry giants, AIG sought bailout package from the federal government which subsequently granted the insurance company with $182 stimulus money to keep its finances afloat.
To prevent inappropriate use of bailout money, Obama earlier urged companies to comply with $500,000 salary cap for its top executives, saying this is only fair for average Americans who are struggling from the economic recession.
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