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The AIG bonus payments controversy began i … The AIG bonus payments controversy began in March 2009, when it was publicly disclosed that the American International Group (AIG) insurance corporation was going to pay approximately $218 million in bonus payments to employees of its financial services division. AIG is notable for having received taxpayer bailouts and in the fourth quarter of 2008 posted a loss of $61.7 billion, the greatest ever for any corporation. Beyond the $165 million in bonus payments that were announced in March 2009, the total bonuses for the financial unit is unknown, it was estimated that it could have reached $450 million and bonuses for the entire company could have reached $1.2 billion. The event sparked widespread outrage among both Democratic and Republican politicians, and from media commentators on all sides of the political spectrum. Both the House of Representatives and the Senate adopted bills that taxed these bonuses at a very high rate, but these bills were never signed into law and were opposed by the financial sector, right-wing pundits, and President Barack Obama. In the end, some AIG employees, including 15 out of the 20 top executives of the company, paid back the bonuses they received to the company. In total, 50 million dollars in bonuses paid were returned to AIG. Following this announcement, House Majority leader Steny Hoyer concluded that the scandal did not warrant a legislative response.al did not warrant a legislative response.
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The AIG bonus payments controversy began i … The AIG bonus payments controversy began in March 2009, when it was publicly disclosed that the American International Group (AIG) insurance corporation was going to pay approximately $218 million in bonus payments to employees of its financial services division.loyees of its financial services division.
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