AIG to Allow Cuomo to Review Executive Compensation
Bending to criticism from New York Attorney General Andrew Cuomo, the American International Group will allow Cuomo’s office to review its spending, including its payments to executives who have since left the company.
The insurer will allow Cuomo to review compensation and bonuses paid to senior executives and will work to recover any improper payments, the Wall Street Journal reports (sub. req.). AIG has also agreed to cancel 160 conferences and events, saving the company around $8 million, the New York Times reports.
The company has also agreed to suspend a $10 million severance payment to its departing chief financial officer. Cuomo also criticized payments made to former CEO Martin Sullivan, who received $15 million in severance and a $5 million bonus.
Cuomo sent a letter to AIG earlier this week saying the company must recover millions of dollars in “unreasonable” and “outrageous” payments. State law allows creditors of undercapitalized companies to object to expenditures “made in the absence of fair consideration.” AIG is among the companies receiving federal bailout aid.
