AIG CEO's annual salary is $1

By SiliconIndia   |   Wednesday, 26 November 2008, 10:50 Hrs   |    3 Comments
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New York: Troubled insurance giant American International Group's (AIG) CEO Edward M Liddy's annual salary is just one dollar in 2008 and 2009. The company also decided not to give any annual bonuses or pay hikes for its top-seven-officer Leadership Group.

Meanwhile, leading German reinsurance firm Munich Re is showing interest in buying the life insurance business of AIG in Asia.

And there would not be any salary hike through 2009 for the 50 next-highest executives, in addition to bonus, severance and retention award restrictions.

AIG, for which the U.S. government on November 11 nearly doubled the bailout package to 150 billion dollars from 80 billion dollars previously, is planning to sell some of its assets, including life insurance business in the US, Europe, Latin America and Japan, to recover from a financial mess.

Announcing the pay restrictions for its executives, AIG also said that it is developing a funding structure to ensure that no tax payer dollar is used for annual bonus or future cash performance awards for AIG's 'Senior Partners,' or the top 60 management people.

Commenting on the move, AIG Chairman and CEO Liddy said, "AIG's senior executives recognize AIG's obligation to tax payers."

The initial compensation for Liddy, who joined AIG on September 18, will consist entirely of equity grants, showing his confidence in AIG and its team.

While he would not receive an annual bonus in 2008 and 2009, he might be eligible for a special bonus for extraordinary performance payable in 2010. Liddy will also not be eligible for severance payments.

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