Politics

House Passes Legislation to Return Excessive Bonuses to Taxpayers

By Karina

As a result of extraordinary abuses of the public trust by companies rewarding employees with excessive compensation while receiving billions in taxpayer assistance, today the House passed legislation (HR 1586) by a vote of 328-93 to hold companies, including American International Group (AIG), accountable for the bonuses that were paid to their executives. The bill will impose a new 90 percent tax on bonuses received by executives who worked at companies, such as American International Group (AIG), that received more than $5 billion in taxpayer assistance.

After receiving more than $170 billion in taxpayer funds, AIG paid $165 million in retention payments to executives most of whom have mismanaged their company into near bankruptcy. The top recipient received more than $6.4 million and more than 73 of these executives were paid over $1 million in retention bonuses. After receiving their retention bonuses, at least eleven recipients left the company.

Learn more about the legislation>>

Speaker Pelosi in support of the legislation:

Rep. Carolyn Maloney (D-NY):

Chairman Barney Frank (D-MA):

Rep. Sandy Levin (D-MI):

Rep. Earl Pomeroy (D-ND):

Full post as published by The Gavel on March 19, 2009 (boomark / email).