The Infamous AIG Bonus Agreement

Thanks to the House financial services subcomittee we can now read the infamous AIG employee retention agreement and see exactly how the bonuses were protected against losses.

The key provisions of the contract fall on pages 10 and 11, where the amount of losses that can reduce the amount of bonuses is capped at an annual amount. In short, the size of the bonus pool cannot be reduced by more than $67.5 million per year. That means the employees were guaranteed a minimum bonus regardless of performance.

 

 

 

AIG Bonus PlanFree Legal Forms

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