AIG Says Bailout Loan Costs Wiped Out Profit Bonuses
Law360, London (November 27, 2019, 6:40 PM GMT) -- AIG's financial products unit told an appeals court Wednesday that a London judge erred in ruling that 23 former executives are entitled to $108 million in deferred bonuses predating the financial crisis even when there were no distributable profits.
Peter Goldsmith QC, representing AIG Financial Products Corp., wrapped up the three-day hearing by saying that the High Court judge wrongly interpreted restoration provisions within the former employees' deferred compensation plans as an absolute obligation.
But that obligation only arises “if and when the company returns to profitability,” Goldsmith said.
AIG’s financial products unit was engaged in derivatives trading, including credit default...
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