Change to Connecticut Law Could Prevent Taxpayer-Funded Payments
HARTFORD – State Representative Vincent Candelora (R-North Branford) joined House and Senate Republican Leaders today as they addressed state laws cited by insurance giant AIG to justify $165 million in “outrageous” employee bonuses must be re-written and they pledged to take action as early as next week when the legislature convenes.
AIG in recent days has cited provisions of the Connecticut Wage Act to go ahead with the bonuses. The company says that if it does not go forward it could cost double the $165 million and taxpayers would be left with the bill. Candelora said he wants to take away that argument from AIG which has received $170 billion in federal bailout money.
“Financial failure, which is the reason AIG needed federal bailout cash in the first place, should not be rewarded with large bonuses,” said Rep. Candelora. “The way in which AIG are abusing Connecticut law to justify these bonuses is outrageous and even questionable. When you manage your company to the point of implosion you don’t deserve bonuses, particularly at the expense of taxpayers.”
Candelora noted that acting quickly on the measure was imperative as AIG expects to receive billions more aid this year.
Republicans will try to amend the laws to focus on companies that receive federal bailout assistance and exempt bonuses and retention bonuses from coming under the Connecticut Wage Act.
Candelora said he hoped the measure would attract bipartisan support from Democrats when they introduce the legislation next week.