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AIG restricts CEO compensation or its just a publicity stunt!

By Amarendra Bhushan for CEOWORLD Magazine Updated:November 26, 2008

Give me a break!

It’s a publicity stunt. Get people looking at the CEO, or the “top 5″ and ignoring the rest of the company. They probably have hundreds, if not thousands of executives making high 6 figure salaries and huge bonuses.

American International Group is limiting how much it pays its executives, including granting a $1 for 2008 and 2009 to its Chairman and Chief Executive Edward Liddy. The decision is one of many broader moves made by the troubled New York-based insurer Tuesday. It has been under pressure to restrict executive pay since accepting billions in government assistance. The moves will also include no 2008 annual bonuses and no salary increases through 2009 for AIG’s top seven officers. There will be no salary increases through 2009 for the 50 next-highest AIG executives.

I would say, No pay raises, no bonuses, no stock options till every cent of the taxpayers money is paid off with interest even it it takes to 2019. It should be that simple. Of course, they should also pay back all bonus money and salary for at least last year.

Does this mean no stock options as well? Just want to make sure they get their $1 and not millions in stocks options etc. Now it would be most appreciated that all of the top 50 execs repay their 2007-2006 salaries & bonuses so it covers the $25 billion they owe + interests.

Because first he was independantly wealthy before taking the job, and second his ego leads him to believe he can paint himself out as a miracle worker and get a sizable bonus for his rescue operation in 2010. I have no association with him or AIG, this is just my analysis of the situation.

third, This is meaningless. The stock is low, under 2 bucks, so he’ll probably get a few million cheap options. When the stock goes to 5 he’ll make way more than any current CEO’s salary. Come on, does anyone think he’s actually ethical and responsible, and will just take $1 salary for a year?

That’s $1 too much, if you ask me.

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