American International Group Inc. said it is terminating voluntary deferred compensation programs to eliminate an incentive for employees to leave the company in order to obtain deferred pay.
AIG said 14 voluntary deferred compensation programs involving 5,600 employees and independent agents and representatives are affected by the decision.
The company explained that approximately $500 million in earned but deferred pay will be distributed in the first quarter of 2009, which is pay that individuals earned but volunteered to defer receiving until a later date.
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