Thursday, November 27, 2008

AIG Retains Executive Bonuses

"Some AIG executives to receive 'retention' pay" by Bloomberg News | November 27, 2008

NEW YORK - American International Group Inc., the insurer that said Tuesday it scrapped bonuses for top executives after a US bailout, will still pay 130 managers "cash awards" to stay with the firm, including $3 million to retirement services chief Jay Wintrob.

Wintrob, 51, will get the "retention" payment in two installments, the first in April 2009 and the rest a year later.... "The expectation from the public and Congress was that they weren't getting bonuses, not that they'd be pushed off by several months," said David Schmidt, a consultant at executive pay firm James F. Reda & Associates. "That clearly violates the spirit of AIG saying they'll forgo their bonuses."


Wintrob was one of six top-paid AIG executives in 2007, with total compensation valued at $7.63 million. He earned a salary of $775,000 and a $1.74 million bonus in addition to stock and options, according to an April regulatory filing. --more--"