AIG execs 'threaten to quit in remuneration row'

7 December 2009

Five executives at American International Group (AIG) have told their board they are prepared to resign if US pay czar Kenneth Feinberg imposes further restriction on their pay levels next year.

The executives, reported to include Anastasia Kelly, AIG's general counsel, and vice chairman Nicholas Welsh, notified AIG of their plan last week.

However, two of them are believed to have retracted their threat to leave over the course of the weekend, reports the Wall Street Journal.

Mr Feinberg has already set a $500,000-a-year pay ceiling for the majority of the top-paid employees at AIG, as part of plans that have seen pay levels drop by almost 60 per cent for its top 13 executives.

Last month, AIG chairman Robert Benmosche warned he may quit himself if AIG, which is 80 per cent owned by the state after receiving $182 billion in bailout funds, was subject to further restrictions on its remuneration policies.

But he later announced his intention to fight on, telling staff in a leaked memo: "We are all working aggressively to overcome this compensation barrier that stands in the way of restoring AIG's value and allowing us to live up to our obligations to all shareholders."

By Asim Shah

Become a bobsguide member to access the following

1. Unrestricted access to bobsguide
2. Send a proposal request
3. Insights delivered daily to your inbox
4. Career development