Eleven A.I.G. quit over growing bonus scandal

From the BNO Newsroom.

New York, NEW YORK (BNO NEWS) -- A number of A.I.G. executives have resigned amid a growing scandal involving excessive bonuses, the AFP news agency reported on Tuesday.

The agency reported eleven executives had left the company but a spokesman for A.I.G., when speaking with BNO News, was not immediately able to comment on the report.

Meanwhile, New York Attorney General Andrew Cuomo says the company paid bonuses of $1 million or more to 73 employees, including 11 people who no longer work for the company, the Associated Press reported.

Cuomo subpoenaed information from A.I.G. on Monday to determine whether the payments constitute fraud under state law. He says contracts written in March 2008 guaranteed employees 100 percent of their 2007 pay for 2008, regardless of their performance.

According to a prosecutor, the company paid more than $42 million in bonuses to the "top ten bonus-getters".

President Obama and other lawmakers have heavily criticized A.I.G. for paying $160 million in bonuses to employees of its Financial Products division, the unit primarily responsible for the company's meltdown.

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