After bullying AIG to stop gallavanting around on luxury retreats and paying its execs lavish salaries, Andrew Cuomo is taking the next step to ensure a lean lifestyle at AIG: He’s freezing pay to former CEO Martin Sullivan (we hope someone tells him) and he’s stopped payments from the $600 million compensation and bonus pool in the firm’s financial products division.
AP via LA Times: New York Attorney General Andrew Cuomo says American International Group, which is being supported by a federal bailout, has agreed to freeze millions of dollars in compensation and bonuses for former executives.
In a letter to Wednesday to AIG’s new chairman, Edward Liddy, Cuomo writes that based on his office’s review of company documents, the insurance and finance giant has agreed to stop any payments under former chief executive Martin Sullivan’s $19 million pay package.
Also, AIG confirmed that no payments will be made from the $600 million compensation and bonus pools of the company’s Financial Products subsidiary, including $162 million in AIG shares awarded through options to the subsidiary’s six top executives.
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