Get Access to Print and Digital for $23.99 per year.
Subscribe for Full Access
[No Comment]

AIG’s Bonuses

Adjust

AIG executives, we’re told, argue that they have to proceed with the nine figures in bonus payments because there are contractual commitments in place. From what I see, their analysis of the law and their legal obligations is a bit simplistic. Among other things they need to be taking into account the law respecting preferential payments to insiders and fraudulent conveyances. That would suggest that making “bonus” payments might be a very foolish move, and that any payments actually made might be recaptured. It would also increase the pressure to put AIG into bankruptcy as a vehicle for reversing many of these payments. Is that what AIG management wants?

More from

More
Close
“An unexpectedly excellent magazine that stands out amid a homogenized media landscape.” —the New York Times
Subscribe now

Debug