Under-fire AIG hopes employees will help salvage its reputation

New York: New York Attorney General Andrew Cuomo hopes more American International Group (AIG) employees will return their bonuses, after 15 of the top 20 bonus recipients at the troubled insurer agreed to return their money.

In total, AIG employees have agreed to return about $50 million of the $165 million in bonuses awarded earlier this month by the insurer, Cuomo's office said on Monday.

At most, Cuomo said his office could hope to recoup $80 million of the bonuses - roughly the amount paid out to AIG employees in the US. The bonuses were paid out to employees of the financial products division, a global unit that issued derivatives called credit default swaps that helped sink AIG as a whole last year.

The agreement to return the money followed a firestorm of criticism and some arm-twisting from New York's attorney general. AIG has come under heavy criticism because the bonuses were given to employees after the company received $170 billion in bailout money.

"I applaud the employees who are returning the bonuses," Cuomo said. "I think they are being responsive to the American people."

Cuomo said 9 of the 10 people receiving the largest awards have agreed to return their bonus. Cuomo said some others have refused to return the money, while others are still considering it.

Cuomo said he doesn't plan to release the names of the employees who have agreed to return the bonuses, and said there is no implied threat that if an employee doesn't consent to returning the bonus that their name will be released.

About 400 employees and future employees in AIG's financial products division received bonuses. Documents provided by AIG to the Treasury Department said the awards ranged from $1,000 to nearly $6.5 million. Seven employees were to receive more than $3 million.