AIG Among 3 TARP Companies to See Top Exec Compensation Freeze

Sept. 17, 2008 file photo of the AIG logo shown in New York (AP Photo/Mark Lennihan, file) Sept. 17, 2008 file photo of the AIG logo shown in New York (AP Photo/Mark Lennihan, file)

The Treasury announced on April 6 that the chief executives of AIG, Ally Financial and General Motors would have their compensation packages frozen for a second year in a row, essentially keeping their compensation at 2011 levels.

The compensation freeze arose out of the 2007-2009 financial crisis when the government injected taxpayer-financed funds into the companies as part of the Troubled Asset Relief Program (TARP).

AIG’s top executive will receive total direct compensation (a mix of cash, stock and future stock option) of $ 10.5 million while Ally Financial’s leader will receive $9.5 million and GM’s chief executive will receive $ 9 million.

The Treasury also announced that total direct compensation during 2012 for 69 other senior executives at the three companies was being cut by 10 percent from 2011 levels. The group of 69 is comprised of the five senior executive officers and the next 20 most highly compensated employees (based on 2011 compensation) at the three companies without six departures that took place since Jan. 1, 2012.

The three companies were part of a larger group of seven companies that were deemed by the Treasury to have received “exceptional” assistance; in response to populist anger at high-pay and huge bonuses at bailed-out firms, the Obama administration created a “special master’s office” to oversee pay practices at exceptional firms. Four of the original seven—Bank ofAmerica, Citigroup, Chrysler Financial and Chrysler—have repaid their TARP money and left the program.

This story originally appeared on LifeHealthPro, a sister site of PC360.

Comments

Resource Center

View All »

High Risk Insurance Coverage in the E&S Market

Experts discuss market conditions, trends and projected growth in a rapidly changing niche.

Top E-Signature Security Requirements

This white paper covers the most important security features to look for when evaluating e-signatures...

EPLI Programs Crafted Just For Your Clients

Bring us your restaurant clients, associations and other groups and we’ll help you win more...

Is It Time To Step Up And Own An Agency?

Download this eBook for insight on how to determine if owning an agency is right...

Claims - The Good The Bad And The Ugly

Fraudulent claims cost the industry and the public thousands of dollars in losses. This article...

Leveraging BI for Improved Claims Performance and Results

If claims organizations do not avail themselves of the latest business intelligence (BI) tools, they...

Top 10 Legal Requirements for E-Signatures in Insurance

Want to make sure you’ve covered all your bases when adopting e-signatures? Learn how to...

Get $100 in leads with $0 down!

NetQuote's detailed, real-time leads have boosted sales for thousands of successful local agents across the...

The Growing Role of Excess & Surplus Lines in Today’s...

The excess and surplus market (E&S) provides coverage when standard insurance carriers cannot or will...

Increase Sales Conversion with this Complimentary White Paper

This whitepaper will share proven techniques - used by many of the industry's top producers...

Personal Lines Pro eNewsletter

Critical insights into the personal auto, homeowners, and other consumer insurance markets to help P&C professionals stay informed – FREE! Sign Up Now!

Advertisement. Closing in 15 seconds.