Tech & Biz

AIG CEO Edward Liddy Salary Cut to $1 per Year

by Jordan Yerman | November 26, 2008 at 08:39 am

1339 views | 1 Recommendation | 1 comment

As the head of AIG, which got a $150 billion bailout from the US federal government, Edward Liddy is cutting his salary to $1 per year.

Liddy will still be receiving an as-yet-undisclosed stock package as well, though that's not too valuable at the moment.

Having said that, he can probably coast for a bit on his previous paydays.

AIG (AIG, Fortune 500) will also forgo bonuses this year and eliminate pay increases through 2009 for the firm's top executives.

Liddy will get paid $1 per year for 2008 and 2009, with his compensation consisting entirely of equity payments. While he will not receive bonuses during those years, he will be eligible in 2010 for "extraordinary performance." He will also be ineligible for severance payments.

Actually, only a handful of execs will be missing out on bonuses...

In the letter, AIG says they are "extremely grateful" for the support they have received from taxpayers, and as their way of showing how "prudently" they are acting, they will not be giving bonuses to their top seven executives. The rest will get bonuses, but won't be getting a raise this year.

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Jaydin G

at 01:45 on March 30th, 2009

The bailout fund is really big! Hope that it will go to a good thing. Normal 0

Not many people used to know who Jake DeSantis even was. He is on his way to being more of a name, after Jake DeSantis posted his resignation letter in the press. He used to be a high-ranking officer in AIG's infamous Financial Products Division. He posted the resignation to Edward Liddy, AIG CEO, and declared that he will not be returning the bonus he received, as it is just compensation and not cash advance loans. (Though it may have been from the cash advance loans they got from taxpayers.)