American International Group Inc (AIG) has lost a top executive because of the government’s limits on executive pay.
AIG said on Wednesday that vice chairman and general counsel Anastasia Kelly has resigned, effective immediately.
Kelly left because of the reduction in her base salary that was mandated by the government’s pay czar, Kenneth Feinberg, AIG said.
Companies like AIG that hold government bailout funds are subject to restrictions including limits on executive pay. In AIG’s case, that includes the insurer’s 100 highest-paid employees. The government has given AIG a bailout package worth up to US$182.5 billion in exchange for an 80 percent stake in the New York-based company.
AIG also said Suzanne Folsom, chief compliance and regulatory officer, has left to pursue other opportunities. The company did not say if pay was a reason for her departure.
Last month, the insurer said it cut the salaries of three top executives, including chief financial officer David Herzog, to comply with the pay restrictions.
The insurer, however, has said it would go ahead with a previously announced pay package for CEO Robert Benmosche of US$7 million.
Benmosche, who took over as CEO of the embattled insurer in August, will receive an annual salary of US$3 million in cash and US$4 million in AIG common stock under the pay agreement.
The Wall Street Journal reported on Tuesday that AIG was prepared to give Kelly several million dollars in severance pay. The Journal, quoting people familiar with the matter, said the company had determined Kelly was entitled to the money under terms of the AIG severance plan.
Kelley joined AIG in September 2006 as general counsel. She was promoted to vice chairman earlier this year.
Folsom joined AIG in April 2008.
AIG said it has already begun looking for successors for both executives.
AIG shares fell US$0.01 to US$30.59 in after-hours trading on Wednesday after closing at US$30.60, down US$1.06, or 3.4 percent, from a day earlier.
NO HUMAN ERROR: After the incident, the Coast Guard Administration said it would obtain uncrewed aerial vehicles and vessels to boost its detection capacity Authorities would improve border control to prevent unlawful entry into Taiwan’s waters and safeguard national security, the Mainland Affairs Council (MAC) said yesterday after a Chinese man reached the nation’s coast on an inflatable boat, saying he “defected to freedom.” The man was found on a rubber boat when he was about to set foot on Taiwan at the estuary of Houkeng River (後坑溪) near Taiping Borough (太平) in New Taipei City’s Linkou District (林口), authorities said. The Coast Guard Administration’s (CGA) northern branch said it received a report at 6:30am yesterday morning from the New Taipei City Fire Department about a
IN BEIJING’S FAVOR: A China Coast Guard spokesperson said that the Chinese maritime police would continue to carry out law enforcement activities in waters it claims The Philippines withdrew its coast guard vessel from a South China Sea shoal that has recently been at the center of tensions with Beijing. BRP Teresa Magbanua “was compelled to return to port” from Sabina Shoal (Xianbin Shoal, 仙濱暗沙) due to bad weather, depleted supplies and the need to evacuate personnel requiring medical care, the Philippine Coast Guard (PCG) spokesman Jay Tarriela said yesterday in a post on X. The Philippine vessel “will be in tiptop shape to resume her mission” after it has been resupplied and repaired, Philippine Executive Secretary Lucas Bersamin, who heads the nation’s maritime council, said
CHINA POLICY: At the seventh US-EU Dialogue on China, the two sides issued strong support for Taiwan and condemned China’s actions in the South China Sea The US and EU issued a joint statement on Wednesday supporting Taiwan’s international participation, notably omitting the “one China” policy in a departure from previous similar statements, following high-level talks on China and the Indo-Pacific region. The statement also urged China to show restraint in the Taiwan Strait. US Deputy Secretary of State Kurt Campbell and European External Action Service Secretary-General Stefano Sannino cochaired the seventh US-EU Dialogue on China and the sixth US-EU Indo-Pacific Consultations from Monday to Tuesday. Since the Indo-Pacific consultations were launched in 2021, references to the “one China” policy have appeared in every statement apart from the
More than 500 people on Saturday marched in New York in support of Taiwan’s entry to the UN, significantly more people than previous years. The march, coinciding with the ongoing 79th session of the UN General Assembly, comes close on the heels of growing international discourse regarding the meaning of UN Resolution 2758. Resolution 2758, adopted by the UN General Assembly in 1971, recognizes the People’s Republic of China (PRC) as the “only lawful representative of China.” It resulted in the Republic of China (ROC) losing its seat at the UN to the PRC. Taiwan has since been excluded from