Some “particularly critical” bosses get to keep large salaries
US pay czar Kenneth Feinberg has let AIG pay larger than predicted salaries amid fears of a mass exodus of managers, the Times reports.
the Special Master for Executive Compensation exempted 12 executives from a rule limiting annual cash pay to $500,000 (£308,000). One, at an unnamed company, will receive more than $1m in cash.
“In a very few cases, we did recognise there was an individual who was deemed to be truly essential,” Mr Feinberg said.
AIG failed to change contracts
Feinberg said that he had failed to convince AIG to restructure contracts under which it had promised executives big retention bonuses.
He said that he consulted with the Fed and the Treasury, which convinced him that several workers at AIG were “particularly critical to AIG’s long-term financial success”.
