AIG to Freeze Former CEO’s Pay
Amidst the financial troubles regarding the misuse of funds by AIG (American International Group) after government bailout assistance, the New York Attorney General has announced that the company will freeze the pay of former Chief Executive Officer (CEO) and other employees within the unit that was the subject of misappropriation allegations, as reported by Reuters. Former CEO Martin Sullivan, was set to receive $19 million as part of a $47 million total severance package.
The company has also reportedly agreed to freeze monies that are part of a $600 million fund for deferred compensation and bonus pay for an AIG subsidiary. AIG has been stated to have had three different CEOs in the span of three months. The insurance giant’s compensation plans have been scrutinized due to high CEO severance offerings despite the looming threat of bankruptcy. The company’s financial losses have partly been attributed to incentives to executives who were stated to have used non-beneficial practices for producing short-term revenue as opposed to fostering long-term growth for AIG.
Tiffany Chery for http://www.wiredprnews.com
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