Did The Right Thing: Former AIG CEO Gives Up Severance Package

While the outgoing Fannie Mae and Freddie Mac CEOs’ severance packages were taken away by the government, former AIG CEO Robert Willumstad has done the responsible thing and refused to take a $22 million exit fee, acknowledging his mismanagement of the company.

The Guardian: The outgoing head of the stricken insurance company AIG has voluntarily forfeited a $22m (£12m) severance package after being effectively sacked from his job as part of a bail-out by the US Treasury.

Robert Willumstad, who was only appointed chief executive in June, was told his services were no longer required when the US government rescued the company from the brink of bankruptcy last week.

In an email to his successor Edward Liddy, he wrote: “I prefer not to receive severance while shareholders and employees have lost considerable value in their AIG shares.”

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