We thought AIG had already decided to restrict executive pay when they decided to do away with this year’s bonuses and back pay to former execs. But we guess not!
Fortunately, the firm did decide to limit exec pay today, including knocking CEO Edward Liddy‘s salary down to $1. Hey, just like Jerry Yang! Oops. Nevermind.
NY Post: American International Group Inc. said Tuesday it is limiting how much it pays its top executives, including granting a $1 salary for this year and the same for 2009 to its 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 $150 billion so far, more than any other company…
The company said there will 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. In addition to his $1 a year salary, Liddy will be getting an unspecified amount of stock.
“We believe these actions demonstrate that we are focused on overcoming our financial challenges so AIG can return value to taxpayers and shareholders,” Liddy said in a statement.
We thought Andrew Cuomo would be pleased:
On Tuesday, Cuomo applauded AIG’s decision to limit executive pay, and said other companies receiving federal bailout money should follow suit.
“It is only fair that top executives, who benefit the most when firms do well, should also bear the burden of the difficult economic consequences their firms now face,” Cuomo said. “The government is not writing blank checks to these companies.”
The market, however, was not:
AIG shares fell 4 cents, or 2.5 per cent, to $1.73 in afternoon trading.
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