NEW YORK (
American International Group
is moving ahead with handing out $12.1 million in retention pay after Pay czar Kenneth Feinberg gave the company aproval to do so.
On Friday, the flailing insurer paid $1 million to CFO David Herzog and $1.6 million to Kristen P. Moor, president and chief executive of its property/casualty insurance business, according to a Securities and Exchange filing.
These payments were supposed to be paid earlier in the year but were delayed due to an investigation, as AIG is one of the companies that received funds from the Troubled Asset Relief Program. The insurer was given $180 billion in bailout loans last fall.
But even on the brink of collapse, AIG promised the retention payments in 2008 to convince employees to stay at the company. "Restructuring of these retention contracts would not be consistent with the Public Interest Standard," with respect to three of the covered employees, AIG said in its filing.
-- Reported by Jeanine Poggi in New York
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