AIG boss agrees $1 annual wage
Ed Liddy, CEO of embattled US insurer American International Group (AIG), is to receive an annual wage of $1 this year and next because of voluntary restrictions placed by the company on executive compensation.
AIG’s seven most senior executives will not receive bonuses for 2008, whilst fifty executives have had their salaries locked until the end of 2009.
AIG was rescued from the brink of collapse earlier this year by a $150 billion loan from the US government.
A funding structure is being developed to ensure that no taxpayer money is used to pay executive bonuses or cash performance awards.
The changes in executive pay structure follow a request earlier this month from New York Attorney General Andrew Cuomo for AIG to disclose its plans on executive bonuses and pay increases.
Cuomo called Liddy’s decision to freeze executive pay a ‘positive step’.
Executive salaries are a hot topic across America at the moment as banks are blamed for the financial crisis and the collapse of the global economy.
Cuomo said he will now press other Wall Street firms who have benefited from government bailout money to reveal their executive pay structure plans.
Category: Insurance News
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