Big Deal at AIG

Big Deal at AIG

American taxpayers own 80 percent of American International Group Inc. (AIG) after the government bailed out the firm, one of the chief forces behind the world-wide financial collapse. AIG, your company, just granted huge pay increases to AIG’s top executives.

Federal Government pay czar Kenneth Feinberg allowed a  41 percent pay boost for AIG CFO David Herzog and a 56 percent pay jump for  top exec Kristian Moor, according to the Wall Street Journal. Mr. Herzog will get $495,000 in cash and $4.49 million in stock in 2010, and may get a $1.02 million incentive award. Mr. Moor will get $700,000 and $5 million in stock this year, and perhaps an incentive bonus of $1.9 million. Mr. Feinburg had capped salaries for other AIG employees at a measly $500,000.

John Plueger, head of AIG’s airplane leasing company ( ILFC),  resigned in disgust at the pay caps. Note to Washingtonians: the Smithsonian Air and Space Museum annex in Virginia is named after ILFC founder Steven Udvar-Hazy, a major donor.

 

Image (“Dogs Dealing Securities at AIG, after C.M. Coolidge”) by Mike Licht. Download a copy here. Creative Commons license. Credit: Mike Licht, NotionsCapital.com

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