<TABLE cellSpacing=0 cellPadding=0 width=452 border=0><TBODY><TR><TD vAlign=top width=452 colSpan=2>Published November 28, 2008
</TD></TR><TR><TD vAlign=top width=452 colSpan=2>No bonuses but 'cash awards' for AIG managers
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(NEW YORK) American International Group (AIG), the US insurer that said on Tuesday it scrapped bonuses for top executives after a US bailout, will still pay 130 managers 'cash awards' to stay with the firm, including US$3 million to retirement services chief Jay Wintrob.
Mr Wintrob, 51, will get the 'retention' payment in two instalments, the first in April 2009 and the rest a year later, said yesterday in a regulatory filing. The firm previously disclosed the programme in a Sept 26 filing and said yesterday that Mr Wintrob and CEO David Herzog elected to get the payments four months later than planned.
'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.'
CEO Edward Liddy is encouraging top employees at AIG subsidiaries to remain so the units retain their value while he finds buyers. The insurer is selling businesses, including the US retirement group Mr Wintrob heads, to repay a US$60 billion loan included in the expanded government rescue package AIG got this month.
'We've said they aren't eligible for annual bonuses, and they're not,' Nicholas Ashooh, spokesman for AIG, said yesterday. 'What we're talking about are retention agreements - they've been pushed back by several months - and it's our hope that those businesses will be sold in several months.'
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</TD></TR></TBODY></TABLE>If the units are sold before payments are due, AIG won't have to give the awards, Mr Ashooh said. Under the agreement announced this week, top executives are eligible for either severance or retention payments, not both, he said.
Mr Wintrob was one of six top-paid AIG executives in 2007, with total compensation valued at US$7.63 million. He earned a salary of US$775,000 and a US$1.74 million bonus in addition to stock and options. -- Bloomberg
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</TD></TR><TR><TD vAlign=top width=452 colSpan=2>No bonuses but 'cash awards' for AIG managers
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</TD><TD>Feedback</TD></TR></TBODY></TABLE>(NEW YORK) American International Group (AIG), the US insurer that said on Tuesday it scrapped bonuses for top executives after a US bailout, will still pay 130 managers 'cash awards' to stay with the firm, including US$3 million to retirement services chief Jay Wintrob.
Mr Wintrob, 51, will get the 'retention' payment in two instalments, the first in April 2009 and the rest a year later, said yesterday in a regulatory filing. The firm previously disclosed the programme in a Sept 26 filing and said yesterday that Mr Wintrob and CEO David Herzog elected to get the payments four months later than planned.
'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.'
CEO Edward Liddy is encouraging top employees at AIG subsidiaries to remain so the units retain their value while he finds buyers. The insurer is selling businesses, including the US retirement group Mr Wintrob heads, to repay a US$60 billion loan included in the expanded government rescue package AIG got this month.
'We've said they aren't eligible for annual bonuses, and they're not,' Nicholas Ashooh, spokesman for AIG, said yesterday. 'What we're talking about are retention agreements - they've been pushed back by several months - and it's our hope that those businesses will be sold in several months.'
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Mr Wintrob was one of six top-paid AIG executives in 2007, with total compensation valued at US$7.63 million. He earned a salary of US$775,000 and a US$1.74 million bonus in addition to stock and options. -- Bloomberg
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