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AIG Chief: Pay Czar's Authority 'Limited'

He tells employees they won't lose salaries retroactively

By Nick McMaster,  Newser Staff

Posted Oct 22, 2009 2:00 PM CDT
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(Newser) – Ken Feinberg won’t take your money, AIG’s chief executive told his employees yesterday. Hours after reports broke that the pay czar would be targeting the troubled insurance firm with salary caps, CEO Robert Benmosche sent a memo reassuring employees that “the Special Master's jurisdiction is quite limited, and we expect Feinberg's upcoming decisions on compensation to cover only the top 25 employees at AIG," reports Reuters.

As today's official announcement made clear, that turned out to be the case. Benmosche said in the memo that Feinberg had told him he would not seek “retroactive” pay adjustments. And he pointed out that the company had been in "direct, near-daily" contact with Feinberg as the policy was being hammered out.

In this Oct. 7, 2008, file photo, American International Group's offices are shown in New York.
In this Oct. 7, 2008, file photo, American International Group's offices are shown in New York.   (AP Photo/Mark Lennihan, file)
This Aug. 15, 2007, file photo shows Kenneth R. Feinberg at his office in Washington.
This Aug. 15, 2007, file photo shows Kenneth R. Feinberg at his office in Washington.   (AP Photo/Charles Dharapak, File)
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COMMENTS
Showing 2 of 2 comments
OWLWOMANXXXX
Oct 23, 2009 12:59 PM CDT
Pay back the American people then you can talk bonuses......why don't we just close these jerks up.
TiredMemeCat
Oct 22, 2009 11:53 AM CDT
Up against the wall for thieving crimes against humanity, Mr. CEO.

 
insurance • AIG • bonuses • Kenneth Feinberg • pay czar

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