AIG to pay out $100 million in bonuses on Wednesday

News reports say American International Group Inc. is set to pay out about $100 million in a fresh round of bonuses to employees of its financial products division, the unit whose risky bets helped sink the company leading to a $180 billion government bailout.

The New York Times reported that AIG agreed to cut the retention bonuses by $20 million but will still hand out $100 million on Wednesday. The Tuesday report cites people with knowledge of the negotiations.

The Washington Post, also citing people familiar with the situation, said the retention payments are for employees at the division who agreed to accept 10 to 20 percent less than AIG had initially promised them two years ago. In return, they are getting their money more than a month ahead of schedule.

 

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