Financial Times FT.com

Kitchen worker received AIG ‘retention bonus’

By Francesco Guerrera in New York and Tom Braithwaite in Washington

Published: October 14 2009 00:15 | Last updated: October 14 2009 00:15

AIG’s “retention bonuses” went to hundreds of employees in the insurer’s troubled financial products unit, including a kitchen assistant who received $7,700 in March, a US government report will reveal on Wednesday.

News that support staff shared $168m-plus worth of retention awards could undermine AIG’s insistence the bonuses were needed to persuade key employees to stay on and unwind the derivatives trades that almost brought down the insurer last year.

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