AIG executive resigns on NY Times op-ed page

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

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 “distasteful” as he testified before disapproving members of Congress.

“We in the financial products unit have been betrayed by AIG and are being unfairly persecuted by elected officials,” wrote DeSantis, who was head of business development for commodities. “In response to this, I will now leave the company and donate my entire post-tax retention payment to those suffering from the global economic downturn. My intent is to keep none of the money myself.”

New York-based AIG has been heavily criticized by government officials and the public after it awarded $165 million in bonuses earlier this month. The retention bonuses, payments designed to keep valued employees from quitting, were paid out whether the employee had a great year or a terrible one.

The bonuses were given 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.