AIG General Counsel's Gamble Works -- She's Walking Away With Millions


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.

NOW WATCH: Briefing videos

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.