Treasury consultant Kenneth Feinberg is currently reviewing a payment request from American International Group concerning $2.4 million due employees this week and $235 million in bonus pay the company has scheduled later, USA Today reported Monday.
With $180 billion in federal bailout funds propping up the company, AIG's
intention to pay employees $165 million in bonuses this spring sparked an uproar that led to House and Senate lawmakers to push bills demanding the bonus pay be returned. In time, enough employees returned their bonus checks to simmer down angry lawmakers.
Feinberg has the authority to set compensation limits of the top 100 employees at companies operating with taxpayer bailout money. But he "might have to absorb some of the flak this time," said Charles Elson, director of the Weinberg Center for Corporate Governance in Delaware.
His task now is to make sure "compensation at those firms strikes an appropriate balance," said Treasury spokesman Andrew Williams.
That balance includes a perception that the companies are not rewarding executives for the type of risky behavior that sank the financial sector last fall.
Copyright 2009 by United Press International.
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