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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Tags: AIG, bailout, finance, salaries, Wall Street
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