AIG GC Reportedly Threatens to Resign if Pay Czar Cuts Her Compensation
The general counsel of American International Group is reportedly one of five corporate employees who told the company last week that they would resign if the government’s pay czar cuts their compensation.
AIG general counsel Anastasia Kelly reportedly asked other employees to join her in indicating their intention to resign if their pay is cut, the Wall Street Journal (sub. req.) reports, citing “several people familiar with the matter.” Four agreed, but two of them changed their minds over the weekend, the story says.
AIG is one of the biggest recipients of government bailout funds. As a result, the company is subject to the decisions of government compensation czar Kenneth Feinberg.
Feinberg has already cut compensation for AIG’s top 13 employees—who were among the top 25 before 12 others left—and was reviewing pay for the next 75 highest paid employees. The five who threatened to quit are among the second-rung group, according to the Wall Street Journal story, and the resignations could bump some members of the group of 75 into the top-paying category next year, making them ineligible for severance pay.
A spokesman for Kelly told the newspaper she didn’t “instigate or encourage” the other four employees and instead merely advised them how they could protect their rights.
AIG spokesperson Christina Pretto told Corporate Counsel the five employees didn’t threaten to resign. Instead they provided written notices in an effort to protect their severance packages, she said.
