AIG held off paying bonuses due last week

American International Group Inc AIG.N , the insurer that has received billions of dollars in federal aid, withheld $2.4 million in bonuses that were to be paid to dozens of senior managers on July 15.

The information was disclosed by George Madison, general counsel nominee to the U.S. Treasury, in answer to questions from Sen. Charles Grassley. Grassley disclosed Madison's answer in a statement.

A source close to the matter said Madison's information was correct.

The payments were not made as scheduled because AIG is still working with Washington compensation czar Kenneth Feinberg on a number of issues, the source said.

The payments to about 40 senior executives were for 2008 performance, and were to have been paid on a staggered basis throughout 2009.



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