The government's pay czar, Kenneth Feinberg, may be scrutinizing the salaries of AIG's top execs, but the 2010 pay of two senior managers will likely raise eyebrows. In an 8K report filed with the Securities and Exchange Commission on Apr. 2, the bailed-out insurer disclosed that it will boost the cash pay of its CFO and the head of its property and casualty business. This represents a 41% and 56% jump respectively from 2009, according to The Wall Street Journal. Meanwhile, overall 2010 cash compensation for a group of AIG top earners will fall 63%, or $22.2 million, from 2009, according to Feinberg.
Combining their cash salary with other compensation, the two execs would get multimillion-dollar pay packages. AIG has received a total of $182 billion in taxpayer support, and Feinberg says the cash salaries of most of its top 25 senior managers would be capped at $500,000.
Raking It in
Insurance head Kristian Moor will receive a base salary of $700,000 in 2010 and a $5 million in "stock salary". The filing described these units as "intended to reflect the value of AIG's common stock and so-called "hybrid" securities, [which] will be vested at grant and will be cash-settled in three equal, annual installments beginning on the first anniversary of the date of grant." Moor is also eligible for long-term incentive pay of up to $1.9 million, which would be granted this year.
CFO David Herzog will receive a base cash salary of $495,000 and an annual "stock salary" of $4.49 million in 2010. He may be awarded up to $1.02 million in long-term incentive pay.
The generous amounts will keep the public wondering how executives at bailed-out firms can still be raking it in. Whatever happened to the $1-a-year executive who's willing to work for the good of their companies and citizens who bailed them out? Where's Lee Iaccoca when he's needed?
Two AIG Execs Get Eyebrow-Raising Pay Jump