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Annoyed by Feds, AIG CEO Threatens to Quit

Benmosche, just 3 months in, is 4th CEO in 18 months

By Harry Kimball,  Newser Staff

Posted Nov 11, 2009 8:43 AM CST
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(Newser) – Just 3 months after taking the job, AIG CEO Robert Benmosche is threatening to storm out in a huff. At a directors’ meeting last week the voluble Benmosche, formerly of MetLife, told colleagues he was “done” with trying to operate the 80% taxpayer-owned company under federal supervision, particularly with regard to compensation. He made a similar stink in August when his own $10.5 million pay package was questioned, and won that battle.

Benmosche has had some success in restructuring AIG, which has been in the black the two most recent quarters, but paying back $90 billion in taxpayer loans is a long-term battle he says he can't win without a pay increase for execs, who he says have taken a 91% cut since last year. “Bob feels he is in an impossible situation,” one tells the Wall Street Journal, which notes that he hasn't yet appealed pay czar Kenneth Feinberg’s rejection of the increase. AIG director and former Northwest CEO Douglas Steenland is being floated as a replacement.

Special Master for Executive Compensation Kenneth Feinberg.
Special Master for Executive Compensation Kenneth Feinberg.   (AP Photo)
The AIG logo is shown in New York.
The AIG logo is shown in New York.   (AP Photo)
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COMMENTS
Showing 3 of 18 comments
yummines
Nov 11, 2009 6:39 AM CST
uh huh, $10 million is low pay? most people in the world will never even make $1 million in a year and he complains about $10 million? why is he entitled to so much money when his company is going straight down the tubes. I say he shouldn't even be receiving more than 100 grand if he simply is just causing the company to fall more and more...
DDiggler
Nov 11, 2009 6:14 AM CST
higher*
DDiggler
Nov 11, 2009 6:13 AM CST
Again, you miss the point, Benmosche is complaining because he cannot pay for top talent; they are going elsewhere. And yes, lets see your souce showing that companies with lower employee pay are just as profitable as companies with lower employee pay.

 
executive compensation • CEO • AIG • Treasury Department • restrictive oversight • Wall Street bailout • Kenneth Feinberg • Robert Benmosche • pay czar • Douglas Steenland

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