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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

(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.

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)

In this Sept. 17, 2008 file photo, the AIG logo is shown in New York. (AP Photo/Mark Lennihan, file)

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US Will Let AIG Execs Skirt Pay Cap

Pay czar Feinberg will make exceptions after 5 threaten to quit

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Annoyed by Feds, AIG CEO Threatens to Quit

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US Will Let AIG Execs Skirt Pay Cap

Pay czar Feinberg will make exceptions after 5 threaten to quit

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OTHER STORIES ON OUR RADAR

executive compensation • AIG • American Insurance Group • Wall Street bailout • Kenneth Feinberg • pay czar

MOST POPULAR STORIES

[ By Views ]

[ By Comments ]

More Newser Stories

Annoyed by Feds, AIG CEO Threatens to Quit

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

17 TARP Banks Paid Execs Billions: Pay Czar

Payments would have violated later guidelines

AIG Execs Ignore Vow to Return Bonuses

Only $19M of promised $45M has been repaid

Pay Czar Cuts Bonuses, But Boosts Salaries

Feinberg beefs up base base to help firms retain talent

50% Pay Cuts for Bailout Execs Due Today

Warren confirms cuts to 25 top earners at 7 companies

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Newser By Users

Community

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More News

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