AIG to freeze millions in pay to former execs

[Amerigo Vespucci]

Source: MSNBC

New York Attorney General Andrew Cuomo says American International Group, which is being supported by a federal bailout, has agreed to freeze millions of dollars in compensation and bonuses for former executives.

In a letter to Wednesday to AIG's new chairman, Edward Liddy, Cuomo writes that based on his office's review of company documents, the insurance and finance giant has agreed to stop any payments under former chief executive Martin Sullivan's $19 million pay package.

Also, AIG confirmed that no payments will be made from the $600 million compensation and bonus pools of the company's Financial Products subsidiary, including $162 million in AIG shares awarded through options to the subsidiary's six top executives. The unit was the main source of the troubled insurer's financial problems.

The former head of that unit, Joseph Cassano, had a share totaling about $69 million of those funds, according to the letter.

Read more: http://www.msnbc.msn.com/id/27324430/

[skooooo]

1. Just now getting around to that, eh??

:eyes:

[BootinUp]

2. good. nt

[Winterblues]

3. Sure we believe you...yep you betcha

Just how long will the supposed "freeze" last, until the new year??

[asjr]

4. It's about time!

[hughee99]

5. Freezing isn't the same as cancelling...

They'll still get their money eventually.

[aquart]

6. It sure isn't. Can I hope they'll have credit problems?