
CFO replaced in compensation probe at AIG
Bensinger joined AIG in 2002, and had held the posts of vice chairman in financial services and acting CFO since May 2008. But on October 15 Cuomo wrote to AIG's board criticising “unwarranted and outrageous expenditures” at the company, and insisting that AIG “review, rescind, and recover all improper payments” made to executive staff members.
The next day, AIG issued a joint statement with the attorney general’s office, outlining a series of measures to address executive perks.
First, it will help the attorney general review, and where appropriate recover, compensation paid to senior officials. Former chief executive officer Martin Sullivan received a $5 million cash bonus and $15 million golden parachute when he left in June, despite escalating losses suffered by the company. Joseph Cassano, who headed the financial products unit, which generated the majority of AIG’s losses, departed in February with $34 million in bonuses.
AIG will also set up a special governance committee to oversee new expense management controls, and will also take a number of immediate actions. These include Bensinger’s dismissal, and a refusal to pay him a multi-million dollar severance package. The company will also cancel a series of conferences and events that would have cost over $8 million. AIG was heavily criticised for holding a $440,000 conference in California after the $85 billion taxpayer bailout was announced.
Liddy affirmed that AIG “will fully cooperate” with the attorney general’s office, underlining the insurer’s commitment “to rebuilding its business and paying back the US taxpayer”.
See also: Fed to lend additional $37.8 billion to AIG
US government takes control of AIG
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
More on Regulation
SVB wouldn’t happen in Europe, says Deutsche CIB head
Campelli also thinks Credit Suisse’s bailed-in AT1 bonds acted as originally intended
How Finma milked Credit Suisse’s CoCos to close UBS deal
An unusual clause in Swiss AT1 bonds allowed them to be written off, but could others follow suit?
Fed’s climate stress test whips up storm for banks
Long-awaited US climate risk exercise puts tough pressure on banks’ data and models
EU banks need ‘billions’ in hedges to pass new NII test
Declines in net interest income can be hedged, but the markets may struggle to handle the demand
CFTC chair gloomy over crypto legislation prospects
FIA Boca 2023: Behnam also asks Congress to grant more powers to regulate third-party tech providers
Missing Basel metric could have revealed SVB risks
US regulators did not implement economic value of equity test that SVB failed badly in 2021
Strict term SOFR trading rules ‘permanent’ says Fed’s Bowman
Official says restrictions on use of term SOFR swaps “should not be expected to change”