AIG Paid Kitchen Assistant $7,700 Retention Bonus
AIG paid retention bonuses totaling more than $168 million to a wide array of employees in its financial products unit, including an assistant in a kitchen, the Financial Times reported Wednesday, citing a government report to be released later in the day.
The report was prepared by Neil Barofsky, the special inspector general for the government’s troubled asset relief program (TARP).
About 400 employees at AIG Financial Products shared more than $168 million between December 2008 and March 2009, after AIG received bailout money from the government, the newspaper reported.
That included a cash retention bonus of $7,700 for a kitchen assistant, $700 for a “file administrator,” according to the FT. Senior executives took home bonuses of up to $4 million.
The financial products unit is scheduled to be awarded another $198 million in retention bonuses next March, but the Treasury Department’s “pay czar” Kenneth Feinberg wants that reduced.
Feinberg has not specified the amount of reduction and it’s unclear whether he can compel AIG to lower the bonuses, Reuters reported.