Maryland’s Rep. Cummings Seeks Details on AIG ‘Retention Payments’

December 12, 2008

Congressman Elijah E. Cummings (D-Md.), a senior member of the House Committee on Oversight and Government Reform and a member of the Joint Economic Committee, wants more information on employee retention payments being paid by American International Group, (AIG), the insurer saved from bankruptcy by some $150 billion in government loans.

Cummings has written to Edward Liddy, president and CEO of AIG, asking for details on 168 retention payments, ranging from $92,500 to $4 million, being paid to employees.

“I remain concerned, as do many American taxpayers, that these retention payments are simply bonuses by another name,” Cummings wrote.

The Maryland Democrat has also asked for more information including all of the “specific expenditures” AIG has made using any of the funds it has been loaned by the government.

On the retention payments, he has asked for information on the difference between the amount of compensation that AIG would have paid under normal circumstances to those receiving retention payments and the amount these 168 individuals are now expected to receive in compensation.

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