WASHINGTON BUREAU — American International Group Inc. now has paid $12.1 million in past due executive retention payments, including $4 million to 4 top employees.
AIG, New York, (NYSE:AIG), disclosed the payments in a document filed with the U.S. Securities and Exchange Commission.
In the document, AIG criticized a decision by Kenneth Feinberg, the federal Troubled Asset Relief Program “pay czar,” to slash payments for 25 top AIG employees by 91% for the remainder of the year.
Feinberg said in a memorandum released Thursday that he was mandating executive compensation cuts at AIG and other TARP recipients in response to public concern about high executive compensation levels at companies receiving federal aid.
That kind of response may ultimately backfire, by adversely affecting “AIG’s ability to retain and motivate its highest performing employees,” AIG says in its filing.