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NY Attorney General Cuomo Asks AIG To Reveal Plans For Executive Pay

DAVID B. CARUSO | November 18, 2008 05:53 PM EST | AP

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NEW YORK — New York Attorney General Andrew Cuomo on Tuesday asked troubled insurance giant American International Group to reveal whether it intends to give bonuses or raises to its executives this year.

In a letter to AIG chief executive Edward Liddy, Cuomo said he believed the company had a duty to be "completely transparent" with taxpayers about executive pay. AIG has received $150 billion so far in federal aid, more than any other company.

Several struggling financial institutions have announced in recent days that they are canceling bonuses for top executives, including Goldman Sachs, the Swiss bank UBS and the British bank Barclays.

Cuomo has praised those moves and suggested that other Wall Street institutions should follow suit, especially those receiving federal bailout money.

In his letter to Liddy, Cuomo also said he would find it "hard to imagine that AIG could pay significant bonuses or give raises to its executives after the company has quite literally been bailed out by the American taxpayer."

"We believe top executives should shoulder their fair share of these difficult economic times," the letter said.

An AIG spokesman, Joe Norton, said the company plans to respond to the letter, but wouldn't say what that response would be.

The company has yet to announce its plans for end-of-year bonuses and pay raises.

Cuomo's office has been pushing hard in recent weeks on the issue of executive pay, asking several companies to turn over information about bonuses that they've paid in the past, or plan to pay in the future.

Filed by Nick Sabloff  |  Report Corrections