Senior managers are struggling financially because of cuts
AIG CEO Robert Benmosche said that 10 staff are struggling financially after losing a combined $168m in prior years' pay since the insurer was bailed out by the US government last year, the Wall Street Journal reports.
Five other employees at the company's financial-products division, who are unwinding its derivative trades, lost $88m
"Many people think there was no penalty for the executives at AIG when it did poorly and that they need longer-term compensation so they don't benefit from taking inordinate amounts of risk," Benmosche said.
Wiped out
“But if you look at where they've been this year, they've been pretty much wiped out. And we have to recognise that we're not 100% sure about what the value of AIG will be in the future."
Benmosche told the Financial Times it would take more than two years for AIG to pay back the $80bn bailout cash. “The more time we use the greater the probability we will pay back all of [the aid] ... Our goal is to pay back all of it,” he said.
The Government Accountability Office last week predicted US taxpayers would end up losing $30.4bn on AIG.
