AIG cuts logo from cards and badges to protect staff
NEW YORK (Bloomberg) — American International Group Inc., the insurer bailed out by the US, has removed its logo from employee badges and corporate charge cards after some workers were harassed, said two people familiar with the situation.
New identification tags and cards were issued last month to New York employees, according to the people, who declined to be identified because AIG hasn't made an announcement. The company told staff in March to conceal their badges and avoid mentioning the insurer in public, according to an internal memo. Mark Herr, a spokesman for New York-based AIG, declined to comment.
"If they're looking to minimise exposure and risk to their employees, to me it's a wise move," Joseph LaSorsa, who runs a security firm in Florida, said in an interview. LaSorsa's firm provides bodyguards and event security.
Chief executive officer Edward Liddy told Congress in March that employees got death threats after news that staff in the unit blamed for AIG's near-collapse got $165 million in bonuses that month. Lawmakers stoked the anger, including Senator Charles Grassley, an Iowa Republican, who said that the executives should "resign or go commit suicide". Grassley later said what he wants from the managers is "contrition".
Employees weren't allowed to keep old badges, which had AIG's blue and white corporate logo, the people said. The new identification cards are emblazoned with the image of a globe.
Some workers were harassed outside the insurer's headquarters at 70 Pine Street and at restaurants because of AIG badges or charge cards, the people said.
"Due to a growing sense of public attention fuelled by increased media scrutiny", employees should avoid wearing AIG- branded apparel, travel in pairs at night and question people hovering near AIG offices, according to the March 18 memo.
AIG has removed its name from buildings and businesses as it rebrands subsidiaries that will be sold to repay loans included in its $182.5 billion federal bailout. A building at 175 Water Street in New York had the AIG logo removed as part of efforts to distance the company¿s property and casualty unit. The brand has been "thoroughly wounded and disgraced" by its four US bailouts and the bonus publicity, Liddy said in March.
The insurer named its property casualty unit — which covers corporations against risks including property damage, worker injuries and terrorist attacks — AIU Holdings Inc. and plans to sell a minority stake in the business. AIG also said it would change the name of a unit selling annuities in the US to Western National Life.
New York Attorney General Andrew Cuomo said March 23 that employees in AIG's Financial Products unit have agreed to give back $50 million of the $165 million round of payments, and it might be possible to recoup $80 million.
The government rescue includes an investment of as much as $70 billion in preferred stock and warrants, $52.5 billion to buy mortgage-linked assets owned or backed by the insurer, and a $60 billion credit line. AIG had tapped about $43 billion on that line as of last week.