AIG agrees to freeze $19 mil in payments to CEO

[Deff Gordon]

http://www.latimes.com/business/care...0,346191.story


American International Group Inc. agreed to freeze $19 million in compensation slated for a former chief executive and $600 million for other executives after it submitted to a U.S. government bailout last month.

New York Atty. Gen. Andrew Cuomo announced Wednesday that the insurer would withhold severance and bonus payments from former Chief Executive Martin Sullivan, the second of three CEOs the company has had since Maurice "Hank" Greenberg's reign ended in 2005. It also will not distribute any of the $600 million in deferred-compensation and bonus pools at AIG Financial Products.

Cuomo last week demanded that AIG, once the world's biggest insurer, stop "extravagant" expenditures and recover millions of dollars in unreasonable payments or face legal action. Since the New York-based insurer's U.S. takeover, it has tapped two-thirds of its $122.8-billion credit line from the Federal Reserve.

"Until the taxpayers recoup their investment in AIG, which is now in excess of $120 billion plus interest, there should not even be any contemplation of bonuses for executive performance," Cuomo said Wednesday.

Sullivan, 54, was replaced as CEO by AIG's former chairman, Robert Willumstad, on June 15 after two straight record quarterly losses tied to bad bets on housing markets.

Sullivan last year said any losses tied to housing would be "manageable," and during his three-year tenure, AIG lost 46% of its market value. When he was ousted, AIG agreed to award him $15 million in severance pay and a bonus of $4 million, the company said in a July 1 regulatory filing. He was also slated to get equity and long-term cash awards valued at about $28 million.

[lazycache]

Good....about effing time...

[Deff Gordon]

i bet that guy is pissed.

[tricky]

Originally Posted by Deff Gordon

i bet that guy is pissed.

no shit, that's a big hit.


Ho wellz. Their bonus, if any, should be based on how quickly they sell off their assets and repay the Gov.

[PETA]

Originally Posted by Deff Gordon

i bet that guy is pissed.

No doubt.

Here's a thought; you have a struggling company that got blindsided by the credit crunch and as a result the company puts these caps on executive pay. What do you think these executives are going to do? So, now that the company has lost all of their best execusives to other comapanies how well do you think that struggling corporationw will fare?

[tricky]

Originally Posted by St. Stalin the Apathetic

No doubt.

Here's a thought; you have a struggling company that got blindsided by the credit crunch and as a result the company puts these caps on executive pay. What do you think these executives are going to do? So, now that the company has lost all of their best execusives to other comapanies how well do you think that struggling corporationw will fare?

Blindsided! Are you serious? This was bound to happen and they shouldn't be receiving kudos and bonuses for their lapse in judgement.

[PETA]

Originally Posted by tricky

Blindsided! Are you serious? This was bound to happen and they shouldn't be receiving kudos and bonuses for their lapse in judgement.

I know, they should have hired you and your crystal ball and this whole mess would have been avoided.

[tricky]

Originally Posted by St. Stalin the Apathetic

I know, they should have hired you and your crystal ball and this whole mess would have been avoided.

If i was making 20+million a year, I would damn sure have a crystal ball. If they don't know WTF they're doing, they don't deserve that kinda paycheck. Isn't that what you're always preaching...higher compensation for higher skills...

[PETA]

Originally Posted by tricky

If i was making 20+million a year, I would damn sure have a crystal ball. If they don't know WTF they're doing, they don't deserve that kinda paycheck. Isn't that what you're always preaching...higher compensation for higher skills...

Dude, what more can I say to point out the obvious truth that our financial industry fucked up huge and had they consulted you we wouldn't be in this mess. I mean with your crystal ball, MBA, oodles of financial experience and your stunningly charming wit how could we be anywhere but financial Utopia had they actaully followed your advice from your well argued opinions on the current crisis ... the pearls you present before the DDM swine surely would have averted all that ails.

[lazycache]

I think lending money to people with credit scores of 300 or less is probably not a good idea....

Or for that matter, allowing a family of 4 making total annual income of $90,000 to get into a mortgage on a $325,000 house...

We still get credit card applications in the mail (almost daily) addressed to my wife's ex-husband who's months behind on his mortgage and car payments...that doesn't sound like good common sense on the part of credit card companies (and their banks)...

[BigBallinColin]

Originally Posted by St. Stalin the Apathetic

No doubt.

Here's a thought; you have a struggling company that got blindsided by the credit crunch and as a result the company puts these caps on executive pay. What do you think these executives are going to do? So, now that the company has lost all of their best execusives to other comapanies how well do you think that struggling corporationw will fare?

you are partly right but I am pretty sure what will happen is that he will get some of the money and the people will be happy. I bet the guys that actually know what they are doing will stay and get mad money anyway.

[Deff Gordon]

business plan:

get crystal
carve into balls
sell for millions

[BigBallinColin]

Originally Posted by Deff Gordon

business plan:

get crystal
carve into balls
sell for millions

or you could just go here once a week and sell the ideas from these mental powerhouses for a hefty profit.

[BradH]

Originally Posted by Deff Gordon

business plan:

get crystal
carve into balls
sell for millions

fuck that, just get spun and predict the future!