Chicago — The greater press is reporting that American International Group Inc. agreed to freeze $19 million due to its former chief, and $600 million in compensation for other executives amid criticism of such payments in light of the collapsed insurer's U.S. bailout.
While AIG has not publicly confirmed this, Attorney General of the State of New York, Andrew Cuomo sent a letter to Edward Liddy, the CEO of AIG. The letter sets forth that: (1) AIG will freeze any payments under former-CEO Martin Sullivan's $19 million contract; and (2) AIG has confirmed that no payments will be made out of the $600 million compensation and bonus pools of the Financial Products subsidiary. The letter also states the Attorney General's position that taxpayers should be repaid before any executives and that new executive pay structures should eliminate improper incentives.
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