American International Group has responded to critics of thecompany's decision to make payments to retain certain executives,noting that it could lose valuable employees and even reinsurancecontracts if it does not act to keep personnel.
Joe Norton, spokesman for AIG, said the company announced inSeptember that it will pay retention bonuses to 130 executives.Since then, Congressman Elijah Cummings, D-Md., has questioned thepractice, and there have been unconfirmed reports that payments insome cases could more than double some senior managers' annualsalaries.
In a Dec. 1 letter to AIG Chairman and Chief Executive OfficerEdward Liddy, Rep. Cummings said of the retention program, “Thelimited information that is currently available to the public aboutthis program is insufficient to constitute the level of disclosurethat the American taxpayers, who have bailed out this firmrepeatedly in recent weeks, have the right to expect.”
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