AIG chief's salary slashed to $US1

[depakid]

Source: Sydney Morning Herald

American International Group Inc says it is limiting how much it pays top executives, including a $US1 salary for this year and the next to chief executive Edward Liddy.

The decision is one of many broader moves made by the troubled New York-based insurer, which has been under pressure to restrict executive pay since accepting billions in government assistance to save it from collapse. AIG has received about $US150 billion ($229.7 billion) so far, more than any other company.

It was once the world's largest insurer with customers around the globe, and regulators feared the possible effect an AIG collapse would have had on the world's financial system.

The company said on Tuesday there would be no 2008 annual bonuses and no salary increases through 2009 for AIG's top seven officers and no salary increases through 2009 for the 50 next-highest AIG executives.

Read more: http://business.smh.com.au/business/aig-chiefs-salary-slashed-to-us1-20081126-6hob.html

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Think they're finally getting the hint?

[Kittycat]

1. $1 Salary - $30K vacations.

[salguine]

2. And any one of 'em who bitch about it should be fed to the guillotine.

[shireen]

3. they paid themselves in advance before the shit hit the fan

$1/year is good PR. I guess they think we're that stupid to fall for it ...

[Mz Pip]

4. As far as I'm concerned

every last CEO, CFO, President, VP or any other high level management should not be making any more than any other top level tax funded government employee.

If we are bailing them out, then they are working on our dime. Just like our Senators, Congresscritters or President, no more 13 million dollar salaries.

[Dover]

5. Greenberg's 2005 AIG Share Hedge Pays Off Big

Greenberg's 2005 AIG Share Hedge Pays Off Big


Jay Miller, Lauren Pollock and Kathy Shwiff
Of DOW JONES NEWSWIRES


NEW YORK -(Dow Jones)- The collapse of American International Group Inc. (AIG) shares might not be something former longtime Chief Executive Maurice "Hank" Greenberg ever wished for, but it is generating big payoffs on two bets his investment vehicle made three years ago.

On Monday, C.V. Starr & Co. turned over 4.42 million shares valued at $8.4 million to fulfill a variable prepaid forward contract with Credit Suisse Group (CS) that generated $240 million for Greenberg when he entered it. The delivered shares represent the contractual maximum based on a formula tied to the stock price.

Executives have used variable prepaid forward contracts with investment banks to limit the risk of holding big blocks of their company's stock. Most of these arrangements let the investor defer capital-gains taxes while retaining voting rights, said Carr Bettis, founder of research firm Gradient Analytics.

When Starr entered the deal, AIG shares were trading at about $67, meaning the stock turned over Monday was worth $296.3 million in 2005. Bettis said banks receive the shares at a discount as incentive for taking the risk and typically balance that risk with their own hedging strategies.

cont'd

http://www.smartmoney.com/news/ON/?story=ON-20081119-000939-2024&hpadref=1