The outgoing general counsel of AIG will walk away with millions in severance, just as her contract says.
Anastasia Kelly lead a revolt this month of AIG executives threatening to leave in the face of federal pay limitations that would severely restrict their salaries.
The terms of Kelly’s contract, like those of other executives, reportedly say she can resign and collect severance if her pay is significantly reduced.
U.S. pay czar kenneth Feinberg capped annual cash salaries for most executives at $500,000, which would be a significant reduction for Kelly, people close to the matter told The Wall Street Journal.
The other executives backed down, but Kelly stood firm. Orrick reviewed Kelly’s actions and the contract, and AIG determined it would pay her the severance after hearing their report, the WSJ said.
No doubt there will be anger over an executive of bailed-out AIG getting millions for walking away. But a contract is a contract.
We’re guessing future executives’ contracts will have heavily negotiated “in light of economic collapse and government bail out” clauses.
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