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New AIG CEO's Salary: $7M

Figure makes a mockery of government's 'populist image': blogger

By Matt Cantor,  Newser Staff

Posted Aug 18, 2009 10:05 AM CDT

(Newser) – The new CEO of AIG is bringing home $7 million a year to restore the bailed-out firm to health, Bloomberg reports. Robert Benmosche will receive $3 million in cash and $4 million in common stock, a regulatory filing notes. “The cash component had to be enough to attract a very strong candidate and give that person enough incentive to make a change,” says an expert.

But the deal, to which the Obama administration agreed “in principle,” means Benmosche “gets the $7 million whether he performs or not,” one consultant adds. The salary is “stunning” after AIG’s previous boss worked for $1, writes Douglas McIntyre at 24/7 Wall St. “The government would like to press its image as populist by beating down bankers on the pay issue. It has, in one act, undermined its moral authority on the issue.”

The AIG logo is shown in New York.
The AIG logo is shown in New York.   (AP Photo)
AIG financial products offices are seen in Wilton, Conn.
AIG financial products offices are seen in Wilton, Conn.   (AP Photo)
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COMMENTS
Showing 3 of 4 comments
Ucantusethatname
Aug 19, 2009 9:03 AM CDT
The government has no moral authority to exercise. If this guy is getting $7 million, and the former head of AIG worked for $1, the latter head is stupid. Dumber, of course, is that taxpayers permit its government to approve this ridiculous salary--which taxpayers pay.
emptycalm
Aug 18, 2009 5:54 AM CDT
this reminds me of "the war is not for oil". "The bailout money is not for the CEO's"
Newser001
Aug 18, 2009 5:45 AM CDT
This makes little sense... The government approves his salary when, if he performs or not, while we the people hold 80%+ interest in the company. Go figure...?

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