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 get back pay, and as a result will distribute approximately $500 million to such individuals in the first quarter of 2009.
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 these individuals earned but volunteered to defer receiving these funds until a later date.
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