The American International Group (AIG) construction is seen in New York, Mar 24, 2009.
Credit: Reuters/Shannon Stapleton
Stocks & &NEW YORK (Reuters) - American International Group Inc (AIG.N) has asked former employees of the Financial Products section for report about how most they warranted elsewhere after withdrawal the association as it prepares to palm them "retention payments," a source informed with the make a difference pronounced on Monday.
The payments, that critics call bonuses underneath an additional name, are due to laid-off employees underneath their contracts as the section dismantles the operations.
AIG Financial Products would revoke the volume of influence payments to these former employees by the volume they have warranted elsewhere given withdrawal the company, the source said, disappearing to be declared since the letters are not public.
About 70 people are authorised to get these payments and the letters were sent out late last week, the source said.
AIG, that is scarcely 80 percent owned by the U.S. supervision after a $182 billion taxpayer bailout, caused a open cheer over influence payments to Financial Products employees, the section that was at the back of the nearby fall in Sep 2008.
It paid $165 million last year to employees of Financial Products section and was due to compensate out an additional $195 million after this month.
But most AIG Financial Products employees, together with roughly all stream staff authorised for these payments, concluded last month to take a $20 million cut in lapse for an early payment.
The rest of the stream and former employees authorised for these payments are due to be paid by Mar fifteen underneath their contract.
AIG declined to comment.
Separately, AIG concluded to sell the Asian hold up word section to Britain"s Prudential PIBAX.O for about $35.5 billion.
(Reporting by Paritosh Bansal; Editing by Richard Chang)
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