AIG Plans Millions More in Bonuses
American International Group’s recent discussions with President Obama’s compensation czar have centered on whether the company should pay about $250 million in promised bonuses that come due during the next nine months.
But of greater concern to both sides is what to do about the vastly larger sum that comes due in March 2010, when AIG is scheduled to pay more than $200 million in bonuses aimed at retaining executives at AIG Financial Products, the unit whose complex derivative contracts nearly wrecked the insurance giant last fall.
Source: TheWashingtonPost
TARP or whatnot notwithstanding, but why can’t the government limit the total compensation an executive can get? Really, who needs more than, say, $1e6 per annum?