Apparently, the clamor of unhappy constituents is being heard by the Obama administration, which is expected to order companies that received federal aid to slash the pay of its highest paid executives.
But the Times reports that seven companies will be forced to cut the cash payouts to their 25 best-paid executives by an average of about 90% from last year. For many of the executives, said the Times, the cash they would have received will be replaced by stock that they will be restricted from selling immediately.
Although not a part of the news report, there is question as to whether this directive, if issued, will apply to Robert Benmausch, American International Group Inc. CEO, sources close to INN report. On October 5, Bloomberg reported that Robert Benmosche’s $10.5 million annual pay package was approved by Kenneth Feinberg, the Obama administration’s special compensation master.
Feinberg completed his review after New York-based AIG provided him with details of Benmosche’s previous compensation and pay comparisons with other leaders, according to a Treasury Department letter dated Oct. 2. Benmosche, named CEO of the bailed-out insurer in August, will get a $7 million salary and as much as $3.5 million in long-term incentives, said the report.
Register or login for access to this item and much more
All Digital Insurance content is archived after seven days.
Community members receive:
- All recent and archived articles
- Conference offers and updates
- A full menu of enewsletter options
- Web seminars, white papers, ebooks
Already have an account? Log In
Don't have an account? Register for Free Unlimited Access