NEW YORK (
American International Group
isn't getting away with massive executive pay packages again -- not on Kenneth Feinberg's watch.
The Obama administration's Pay Czar rejected much of the pay packages for AIG's top employees, including those in the financial-products unit, the
Wall Street Journal
Feinberg said the compensation packages were inconsistent with "public interest." He said base salary shouldn't be more than $500,000 for the year, and approved salaries between $100,00 and $450,000, according to the
For those earning in this range, cash bonuses will be 91% lower than they were in 2008.
Feinberg also rejected AIG's bid to dole out more than $900,000 in perks and $1.5 million in "other" compensation to select employees. Instead, he said these employees should receive no more than $25,000 each in this type of pay.
But for all the restrictions Feinberg is demanding, there are some things he cannot seem to control. Employees in the financial-products unit may still receive bonuses that are due to be paid in 2010, and Feinberg said he could not persuade AIG to restructure retention bonuses ranging from $1.5 million to $2.4 million to three high-ranking executives, the
Executive compensation at AIG has been a cause for controversy. Earlier this month, it was discovered that
between December 2008 and March 2009, right after it received a massive $85 billion loan from the government.
That pay included a now infamous $7,700 retention bonus for a kitchen aide.
-- Reported by Jeanine Poggi in New York
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