October 26, 2009
SIGTARP Issues AIG Compensation Audit Report
– Broc Romanek, CompensationStandards.com
Recently, the Office of the Special Inspector General of TARP issued an audit report on the troubled arrangements with AIG. I say “troubled” because Ken Feinberg and others were finding little legal authority to rein in bonus payments to AIG’s Financial Product Unit, as noted in this recent NY Times article – I wonder if the Special Master’s efforts last Thursday will come under legal challenge. The audit report addresses:
– What was the extent of knowledge and oversight by Federal Reserve and Treasury officials over AIG compensation programs and, specifically, retention payments to the AIG Financial Products Unit?
– To what extent were AIG Financial Products Unit retention payments governed by executive compensation restrictions or pre-existing contractual obligations?
– What are the outstanding AIG compensation issues requiring resolution, and what Federal Government actions are needed to address these issues?