AIG CEO Robert Benmosche has threatened to abandon the position he took in August if the government doesn’t relinquish some of the control they have over AIG’s pay practices.
Considering that President Obama specifically appointed Kenneth Feinberg to act as a pay czar, and charged him with regulating the compensation practices of the seven companies that have received the most excessive assistance from taxpayers, this seems unlikely.
Compounding this improbability is the reality that AIG has received the most aid, $182 billion to be exact, of all seven of these companies and is currently 80% taxpayer owned.
Benmosche appears unconcerned, demanding a reluctantly Freiberg approved personal salary of $10.2 million and continuing to live with wild extravagance, that includes taking personal vacations on the corporate jet and spending extended periods at his vacation home in Dubrovnik.
Benmosche’s request, under these circumstances, comes off as almost criminal; however, he raises one good point. In order for AIG to conceivably repay the government, they will need the aid of the most talented I-Bankers available and that does come at a price.
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