Amid the financial crisis scourging the global markets, troubled insurance giant AIG has restricted its chief executive officer's salary to a nominal $1 for 2008 and 2009, while there would be no pay hikes for its top executives through 2009. The US government on November 11 nearly doubled the bailout package to $150 billion from more than $80 billion announced earlier.
Meanwhile, the leading German reinsurance company Munich Re on Tuesday said that it is interested in buying the life insurance business of AIG in Asia.
Announcing compensation restrictions that go beyond the government's directive as part of its bailout package, AIG today said that that its CEO Edward M Liddy would be given a annual salary of just $1 in 2008 and 2009.
There also would be no annual bonuses or salary increases in 2009 for AIG's top-seven-officer Leadership Group, AIG said.
Besides, AIG has also decided against any salary hikes throughout 2009 for the 50 next-highest executives, in addition to other bonus, severance and retention award restrictions.
AIG 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.
AIG also said that it is developing a funding structure to ensure that no taxpayer dollars are used for annual bonus or future cash performance awards for AIG's "Senior Partners," or the top 60 management people.
Global meltdown: Complete coverage
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