This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Five Dumbest Things on Wall Street: Nov. 13

Stocks in this article: ORCL DIS AIG

Benmosche the Brave

In the end, Bennie decided not to jet.

American International Group (AIG) CEO Robert Benmosche said Wednesday he plans to remain in his job at the besieged insurer. Benmosche reaffirmed his commitment to the company in a letter to employees after a report in The Wall Street Journal claimed he was close to quitting. The Journal said Benmosche was fed up with government meddling and heavy restrictions on executive pay resulting from the $180 billion in bailout funds the company took from Uncle Sam last year in return for an 80% stake.


Benmosche said in his letter that while he was aggravated by the regulatory oversight, he and the board of directors "remain totally committed to leading AIG through its challenges and to continuing to fight on your behalf."

Wow, now that is a stand up guy! He is a man of such principle and character that he would rather quit after three months on the job than listen to his bosses in Washington. Take heed all you salary-capped AIG employees, because you truly have a special leader worth emulating now. If he can threaten to quit, you can too!

Of course, unlike many of his employees, Benmosche doesn't need the job or the headache, so he can threaten to jump ship and follow through. It's well known he could hang it up in a heartbeat and live quite cozily on the money he made at his last gig running Metlife (MET).

But no. Benmosche is going to be a martyr. He's going to stick around and turn this ship around, or sell it off piece by piece, whichever comes first. And while he does that he's going to collect that entire $10.5 million pay package, which was approved by pay czar Ken Feinberg. The top 25 highest-paid AIG executives, on the other hand, will be limited in most cases to $500,000 according to the government's plan.

Now that's what we call sacrifice.

Dumb-o-meter score: 75 -- Benmosche could easily solve his compensation problem by sharing some of his own. There's plenty of it to go around.

Before joining, Gregg Greenberg was a writer and segment producer for CNBC's Closing Bell. He previously worked at FleetBoston and Lehman Brothers in their Private Client Services divisions, covering high net-worth individuals and midsize hedge funds. Greenberg attended New York University's School of Business and Economic Reporting. He also has an M.B.A. from Cornell University's Johnson School of Business, and a B.A. in history from Amherst College.
5 of 5

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs