Pay Czar Approves $10.5 Million Compensation Plan For AIG Exec

[masuki bance]

American International Group, the insurer that received billions of dollars in a U.S. bailout, said on Monday that it will pay newly-appointed Chief Executive Robert Benmosche an annual salary of $7 million.

In a filing with the U.S. Securities and Exchange Commission, AIG said the salary would consist of $3 million in cash and $4 million in fully-vested common stock. He will also be eligible for a performance bonus of up to $3.5 million.

The pay has been approved in principle by Washington's new pay czar Kenneth Feinberg, said AIG.

AIG, as one of the largest recipients of U.S. aid, has to comply with new pay regulations imposed on companies that have received the largest loans under the U.S. Treasury's Troubled Asset Relief Program.

Benmosche, 65, who officially started his new job on Aug. 10, will be eligible to receive a prorated bonus for 2009, the company said.

He will not receive any severance pay if his employment is terminated, in contrast to the healthy exit packages awarded to CEOs of the insurer in the days before AIG's financial troubles.

Once the world's largest insurer, AIG was saved last September by a taxpayer bailout that has grown to as much as $180 billion. The company had teetered on the brink of collapse from losses on credit default swaps, a type of derivative that sank in value as the credit crisis grew worse.

http://www.cnbc.com/id/32454558
http://www.americablog.com/2009/08/obama-approves-105-million-pay-plan-for.html

*edit for punctuation

[Metta]

1. Another outrageous abuse and betrayal of power and privilege. Happy karma.

to them all.

[Thothmes]

2. Change you can believe in.

[dionysus]

4. worn out, lame cliched phrase you see on DU all the time, intended to be original and clever.

:eyes:

[Thothmes]

9. May be. but

Some times it does not seem to matter whether it is a D or and R running the government. Some things change, some things stay the same. Regardless of the politica rhetoric used to win at the polls.

[proud2BlibKansan]

3. Repulsive

[masuki bance]

5. I'm amazed that this has been dropped so fast here.

I remember when there was uproar when AIG execs were getting the benjamins.

[OwnedByFerrets]

6. How in the HELL will he survive on so little?

[GreenPartyVoter]

7. Why I am not surprised?

[leftofthedial]

8. $3365.38 an hour is a fair price for one of "the boys"

It would hardly be worth showing up for work (in your company limo) for a penny less.


That's nearly as much as the repukes claim the average UAW member makes in Detroit.

[prostomulgus]

10. It's called selling them the rope to hang themselves

Let these executives get big bonuses/salaries that the govt knows all about. Then, once this August recess is over and we have completely jettisoned any attempt at "bipartisanship", President Obama will lower the boom on these crooks in the form of MUCH bigger taxes. They won't be able to hide the money this time and President Obama will ensure that WE THE PEOPLE end up with the lion's share of these bonuses.

Trust our President on this.