NEW DELHI: American International Group (AIG), which recently received a $150-billion bailout package from the US government, is offering retention bonuses to a few senior executives in Asia, including key officials in India, said a person with knowledge of its plan. AIG has offered to pay such executives an extra year’s salary if they stay on with the company till November 2009.
Payments to these executives are likely to be made in 2010. “A few senior executives have been shortlisted across AIG’s offices in Asia for the payout, which includes senior executives in Hong Kong, Philippines, Singapore and India,” the person said. A spokesman for AIG in India was non-committal on the issue. “Our employees are very important in our businesses. We do not comment on specific employee details,” he said. AIG has three main businesses in India: AIG Global Asset Management Company (India) that is fully-owned by AIG, and life insurance and general insurance businesses, which are two independent companies that are majority owned by the Tata Group. Tata AIG Life Insurance Company’s HR head Ashok Ramchandran said: “We have not given retention bonus in our company. But we have devised specific retention plans for employees with critical skill sets that are important for the company. It has been there for the past three years.” AIG is seeking to sell assets across continents after a near-collapse. Foreign media reports say AIG will sell part of its Asia-based life insurance unit American International Assurance (AIA) present in China, Singapore, Thailand, Indonesia and Malaysia. A senior executive working with a prospective buyer of one of AIG’s Asian businesses said the retention bonus ‘made sense’. He felt it would be easier for AIG to sell assets if it retained good managers. “A buyer would look at the managerial capability of the business.” According to news reports, AIG’s Asia operations are attracting a number of potential buyers, including Europe’s biggest reinsurer Munich Re. India’s Tata Sons, a holding company for the Tata conglomerate and the R-ADAG group led by tycoon Anil Ambani, are also in early-stage talks to buy a stake in AIA. In September, the Federal Reserve provided AIG with an $85-billion loan payable in two years in return for an equity stake of 79.9%. Under a revised bailout plan that was unveiled a fortnight ago, the Federal Reserve raised the package amount to $150 billion after the earlier package failed to stabilise the ailing insurance giant. AIG reported a record third-quarter loss of $24.47 billion earlier this month. N.Sukumar Research Analyst www.kences1.blogspot.com --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups "Kences1" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [EMAIL PROTECTED] For more options, visit this group at http://groups.google.com/group/kences1?hl=en -~----------~----~----~----~------~----~------~--~---
