American International Group (AIG) may be losing five senior executives according to a report in The Wall Street Journal late Sunday night. The insurer was told via written notices by these executives that they may quit if their compensation is reduced significantly by the U.S. pay czar.
The five senior AIG executives indicated on December 1, in written notices, that they were prepared to leave by year-end. Two of the executives changed their minds over the weekend. The Wall Street Journal cited two unnamed sources had provided this information.
AIG was given approximately $180 billion in taxpayer funds and has been at odds with the Obama administration's pay czar, Kenneth Feinberg, over executive compensation.
Chief Executive Robert Benmosche reportedly threatened to quit last month, in part because he did not have discretion over pay packages for top executives.
Feinberg has cut average compensation for the 25 best-paid employees at companies that received multiple bailouts and is setting guidelines for pay for the next 75.
Feinberg has vowed to limit bonuses at the AIG's financial products unit, whose massive payouts earlier this year sparked huge outrage.
Written by Cheryl Phillips
HULIQ.com
sources: WSJ.com, NYT, Reuters
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