The compensation packages of top executives at New York-based American International Group Inc. are set to fall under new rules announced by
The rules are aimed at curbing pay for the top 25 executives at the seven firms receiving "exceptional" government assistance.
The issue of executive compensation at firms receiving bail out money exploded into the public consciousness in March, when it was revealed that many employees at AIG including some at the infamous Financial Products unit which precipitated the company's financial meltdown, were receiving large bonuses.
Amidst the furor the bonus revelations created, acting AIG CEO Edward Liddy asked employees getting more than $100,000 to return half of the money. Although employees in the Financial Products employees have given back $19 million of the $45 million they were awarded in March, four of five managers in the unit have not make good on pledges to return the bonuses, Feinberg claims.
Also escaping any pay cut is new AIG President and CEO Robert Benmosche, who came aboard August 10, and will have an annual salary of at least $3 million in cash and $4 million in common stock. Feinberg formally approved the proposed compensation structure for Benmosche in a letter released on October 2, 2009.