US Will Let AIG Execs Skirt Pay Cap

Pay czar Feinberg will make exceptions after 5 threaten to quit
By Kevin Spak,  Newser Staff
Posted Dec 8, 2009 2:13 PM CST
In this Oct. 27, 2009 file photo, Special Master for Executive Compensation Kenneth Feinberg, also known as the Treasury Department's "pay czar", speaks about TARP.   (AP Photo/Charles Dharapak, file)
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(Newser) – Treasury pay czar Kenneth Feinberg will exempt some AIG executives from a $500,000 salary cap, after at least five threatened to quit, sources tell Bloomberg. Feinberg is preparing to make a ruling on pay limits for 75 of the company’s top executives. Five threatened to resign last week if their pay was significantly cut, though two have since retracted their demands.

“It’s the equivalent of saying, ‘We’re going home, and we’re taking our toys with us,’” said one compensation consultant. Feinberg promised in October to ensure that no AIG executive was paid more than $500,000 unless there was “good cause.” The Treasury and Federal Reserve have promised to balance salary curbs with the need to retain top employees.

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