AIG heavyweights to be counting more pennies
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- November
- 25
AIG has agreed to eliminate bonuses and salary increases for its top executives, state Attorney General Andrew Cuomo announced today. Cuomo said he is pleased with the development.
“It is only fair that top executives, who benefit the most when firms do well, should also bear the burden of the difficult economic consequences their firms now face,” Cuomo said in a statement. “This gesture by AIG is appropriate and I encourage other firms to wake up to the new reality on Wall Street and follow AIG’s step quickly. The taxpayers of this country deserve nothing less.”
AIG is grateful for the support it has received from American taxpayers and recognizes it needs to use that support to help the company recover and contribute to the economy, Edward Liddy, AIG chairman and CEO wrote in a letter to Cuomo. AIG’s top seven executives will not receive annual bonuses this year. Those executives and fewer than 55 senior partners will forego any salary increase through 2009 and their 2008 and 2009 bonuses will be restricted, Liddy said.
AIG is developing a funding structure to ensure that no taxpayer dollars are used for annual bonus or future cash performance awards for the top 60 members of management. “We believe that these actions demonstrate AIG’s understanding of the depth of its obligation to the taxpayer and confirm its commtment to transparency of its disclosures,” he wrote.
This entry was posted
on Tuesday, November 25th, 2008 at 12:05 pm by Cara Matthews.
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Jay Gallagher has covered Albany for Gannett News Service since 1984 and has been Albany Bureau chief since 1989. He`s a native of the Boston area and likes to point out that in this millennium, the score is Red Sox 1 championship, the Yankees 0. 
Cara Matthews has been a statehouse correspondent in the Albany Bureau since August 2005. Prior to that, she covered Putnam County government and politics at The Journal News for nearly five years. Before that, she worked at newspapers in Connecticut and covered the state Legislature for one of them. 
