Is AIG Legally Obligated to Pay Bonuses? No One Seem’s to Think So. Not Even AIG

Thus far the major argument in support of allowing AIG to keep their bonus is that the major insurer is legally obligated to do so. But wait! Not so says the majority expertise opinion. Two of the most knowledgeable people on this issue, Lawrence Cunningham, a law professor at George Washington University and Laurence Tribe a law professor at Harvard, both are quite confident that recinding the bonuses is in fact quite legal.

Even AIG’s framing of the bonuses as “retention” bonuses implies as much. Not to mention that AIG’s Chief Executive Edward Libby has asked those receiving bonuses larger than $100,000 to return at least half.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s