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AIG executive resigns over bonus betrayal

(Agencies)
Updated: 2009-03-26 10:56

CHARLOTTE, N.C. -- An American International Group Inc. executive who received a bonus worth more than $742,000 after taxes has resigned publicly, in an Op-Ed column in The New York Times.

Undated file photo of Jake DeSantis, an executive vice president at AIG's Financial Products division. Mr DeSantis has resigned publicly in an Op-Ed column in The New York Times. [Agencies]

Related readings:  AIG staff to pay back big bonuses  Cuomo says AIG execs agree to return $50M bonuses  AIG gives out more bonuses than previously reported  Protesters visit AIG officials' lavish Conn. homes

Jake DeSantis, an executive vice president at AIG's Financial Products division, said Wednesday he's leaving the company and will donate his entire bonus to charity. The letter, addressed to AIG's CEO, Edward Liddy, criticized Liddy for, among other things, agreeing to the payments but then calling the bonuses "distateful" as he testified before disapproving members of Congress.

"After 12 months of hard work dismantling the company, during which AIG reassured us many times we would be rewarded in March 2009, we in the financial products unit have been betrayed by AIG and are being unfairly persecuted by elected officials," Mr DeSantis said in the letter.

New York-based AIG has been criticized for awarding $165 million in bonuses to employees of the financial products division, a global unit at the root of AIG's downfall.

Since September, AIG has received a $182.5 billion federal bailout.

Following is the full letter by Jake DeSantis, posted on New York Times.

"Dear A.I.G., I Quit! "

It is with deep regret that I submit my notice of resignation from AIG Financial Products. I hope you take the time to read this entire letter. Before describing the details of my decision, I want to offer some context:

A screen shot of the resignation letter by Jake DeSantis, an executive vice president at AIG's Financial Products division. [nytimes.com]

I am proud of everything I have done for the commodity and equity divisions of AIG-FPI was in no way involved in — or responsible for — the credit default swap transactions that have hamstrung AIG. Nor were more than a handful of the 400 current employees of AIG-FP. Most of those responsible have left the company and have conspicuously escaped the public outrage.

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