In spite of the fact that American International Group (AIG) is technically under compensation restrictions the company has plans to pay yet another round of employee bonuses, this time worth about $100million, to the dismay of taxpayers who now own the firm. These bonus payments go to employees at AIG’s Financial Products unit who had agreed to accept to stay at AIG and accept 10 percent less money, while those who have left the unit take 20 percent cuts. In return, those who were retained received compensation in advance.Even though they ran the company into the ground, those employees are still legally entitled to bonuses under contract, even if they have lost their jobs. Not surprisingly, AIG has eliminated 200 of these jobs while eliminating their derivatives business. Nonetheless, they still get paid by taxpayers for their part in placing the world economy at the brink of a depression.Why Do Taxpayers Have to Pay for Failure
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American International Group, AIG, AIG financial products