Don’t Mess With The Cuomo!
Euromoney: AIG has agreed to a number of demands from Andrew Cuomo, the New York attorney general, to reduce expenditures at the firm, including looking to recover compensation paid to its former chief executive officer and the former head of its financial products unit.
On October 15, Cuomo informed AIG that it must recover improper bonuses and other payments and perks from its former executives or he would force them to. The next day Cuomo met with Edward Liddy, AIG’s chairman and chief executive officer. Liddy agreed to take several actions.
The main points:
- AIG has agreed to provide the New York attorney general’s office with an accounting of all compensation paid to its senior executives and has agreed to assist the office in recovering any illegal expenditures.
- AIG has agreed to establish a special governance committee within AIG, which will institute new expense management controls. AIG also has a new expense policy guidebook. [Ha! Can you imagine what that will look like???]
- AIG has agreed it will not make any payments relating to the multi-million dollar employment agreement of Steven Bensinger, the company’s chief financial officer, who will be leaving AIG.
- AIG has also agreed to immediately cancel all junkets or perks which are not strictly justified by legitimate business needs. AIG will be cancelling more than 160 conferences and events, some exceeding more than $750,000 an event. This will give total savings of more than $8m. this included a best operator conference scheduled in Las Vegas and costing about $750,000.
How boring does AIG sound now? Hmmm, just like we’d think an insurance company is supposed to be.
See also: AIG Goes On Bird Hunting Jaunt
Illustration by the UK’s News Of The World.
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