The U.S. pay czar, Kenneth Feinberg, is reportedly planning to exempt certain executives at American International Group from a $500,000 salary cap, according to Bloomberg. The move comes after threats from at least five executives to leave the company if their pay was severely cut, but Feinberg denies the threats have any connection to his decision. Two have reportedly since retracted the threats.
General Counsel Anastasia Kelly hired Dickstein Shapiro to represent executives worried about their salary and future collection of severance packages. The executives include Rodney Martin, head of the non-U.S. life unit; William Dooley, senior v.p. in charge of the financial-products unit; Nicholas Walsh, head of the non-U.S. property casualty operations, and John Doyle, who runs the U.S. property casualty unit.
Feinberg is due to announce a decision on pay limits for the 75 top AIG executives as early as next week. The pay czar is under pressure from the Treasury Department and the Federal Reserve to balance curbing excessive pay with making sure that top employees stay on board. He has said that base salaries at AIG would not exceed $500,000 without “good cause.”
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