After announcements that American International Group had adopted voluntary restrictions on executive compensation that eliminate management bonuses this year, a Maryland congressman is demanding that the company provide more disclosure concerning retention bonuses it is paying to retain senior officials.
In a letter, Rep. Elijah Cummings, D-Md., accused AIG of “disingenuous sleight of hand” by disavowing the payment of performance bonuses to senior executives in 2008, but then continuing to provide retention bonuses previously announced in September.
He said AIG was doing this by having the approximately 130 top officials involved agree to delay receiving their retention payments–with a first installment postponed from this month until April 2009, and the second installment moved from December 2009 to April 2010.
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