Thursday, March 19th, 2009...9:56 am
Employment Contracts: AIG Bonus Plan
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The agreement to pay bonuses to employees at AIG Financial Products Corporation has been published in the New York Times.
Under the contracts, bonuses are forfeitable if AIG has terminated employment for “good cause,” which is defined in § 3.04(b) as
conduct involving intentional wrongdoing, fraud, dishonesty, gross negligence, material breach of the AIG Code of Conduct or other policies of AIG-FP or AIG, or conviction of or entry of a plea of guilty or no contest to a criminal offense.
Bonuses are determined by a Committee of the CEO, CFO, etc., and then reviewable by the Board of Directors. There’s no mandatory arbitration over disputed claims, nor any attempt to restrict access to courts. See § 4.05 (Claims procedure).
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