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
In this Oct. 7, 2008, file photo, American International Group's offices are shown in New York.   (AP Photo/Mark Lennihan, file)
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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.