AIG's ex-CEO refuses $22 million severance payout: report

[WriteDown]

Source: Reuters

AIG's ex-CEO refuses $22 million severance payout: report
Monday September 22, 6:23 am ET

(Reuters) - American International Group Inc's (NYSE:AIG - News) former Chief Executive Robert Willumstad has rejected a $22 million severance payment, the Wall Street Journal reported, citing a person familiar with the decision.

Willumstad e-mailed his successor, Edward Liddy, of his decision to forego the severance since he was not able to execute the restructuring plan he had developed, the paper said.

The newspaper also reported major shareholders concerned about the government takeover were planning to meet on Monday to discuss alternatives to the federal bailout, citing a person familiar with the matter.

AIG and Robert Willumstad could not be immediately reached for comment.

(Reporting by Savio D'Souza in Bangalore; editing by Sue Thomas)

Read more: http://biz.yahoo.com/rb/080922/financial_aig_willumstad.html

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There are some good ones out there.

[lumberjack_jeff]

1. If there are two lines leading to the guilotine

Perhaps Mr Willumstad has earned the right to avoid the express lane.

[The Backlash Cometh]

8. I said in a previous thread with the same topic, that we'll probably

find out next week that this was part of a plea bargain.

[Festivito]

21. My guess is that he does not want the rest of his "earnings" reviewed.

Wouldn't it be loverly.

[The Backlash Cometh]

23. British, some?

[Festivito]

25. "British?" "Some?" Huh?

[The Backlash Cometh]

28. Whoops, I meant to say it here:

"Loverly." They use to say it often in the british newsgroups.

[Festivito]

32. Cockney sing'n Liza from "My Fair Lady."

Has me dream'n. A review letting us see how our downfall really works would be lovely. Loverly, loverly, loverly, loverly,loverly, loverly,....

[The Backlash Cometh]

33. Ah. So that's where it originated. Cockney.

[The Backlash Cometh]

27. Self-delete

[Enrique]

2. he better stay off small planes

he's making the other CEOs look bad.

That said, I am somewhat suspicious of this. I think he might end up getting that money somehow.

[pattmarty]

12. Yep. I am not a betting person, but I will bet you're right.

[Prisoner_Number_Six]

3. Well, whaddaya know- one honest man walks among them.

Such a rarity as to be unbelievable...

[Serial Mom]

13. Did he say "thanks, but no thanks"?

right... come on! HONEST MAN?!? He collected probably 10 - 20 million last year, so it is easy to look like you are doing the right thing today by "turning it down".

Hell if you paid me 1 million last year I would have retired and NOT ACCEPTED SEVERANCE - they should hire me - I could probably equal or better his success!

[crossroads]

37. Well Said! I totally agree with you... nt

[Bluzmann57]

4. Probably scared shitless

Probably scared that someone will literally kill him if he took it. Think lynch mob.

[The Backlash Cometh]

9. The irony is, that if anyone had it in for him, and would resort to such

extremes, it would probably be another rich man.

[alcibiades_mystery]

5. Dumbass

I'll tell ya what: take the money, and give me $5000. That's all I ask for. Give a lot of people $5000.

[WriteDown]

6. Haha.....

Good laugh for a Monday. I actually need about 20K though.

[yourout]

7. He probably wants 44 million instead.

[HopeHoops]

10. The "bailout" needs to be conditional on banning ALL executive payouts

I have never heard a poor argument, much less a good one, for why company leaders should be showered with money as a bonus for killing the company.

[WriteDown]

11. Eh...

Has to be a cap. Not all executives are taking home 20 million. Cap it at 750,000 which isn't too much in NY.

[wtmusic]

14. Cap it at ZERO

Run your company into the ground then walk away with 3/4 of a million dollars? Bah.

[WriteDown]

17. You're still talking about things that were negotiated...

into legal contracts. Like I've said before, I have had severances built into my contracts. Its one of the things that I negotiate before taking any new job. I don't think its right to just remove it considering it is a legally binding contract.

[wtmusic]

18. And if your company goes belly up, all bets are off

You get pennies on the dollar. Just like their other liabilities.

[WriteDown]

20. Not always the case....

but definitely can happen. Good idea to leave before that if you can see it coming.

[redqueen]

29. Indeed. (nt)

[KansDem]

15. Maybe he heard about the CEO in India...

DU thread

[customerserviceguy]

16. He's only been there three months...

maybe getting $7 million a month to run a company into the ground was even too much for him to countenance?

[Enrique]

19. how long did it take Carly Fiorina?

and how much did she get?

[customerserviceguy]

22. Even the FReeptards

are embarassed by her!

[cstanleytech]

24. LOL shes pretty much put her foot in her mouth by saying that palin was not qualified to run a

company like HP, then she added insult to injury by saying Obama and "McCain" couldnt either.
I love Carly, shes one of the best weapons to use against the McCain campaign just by letting her open her mouth same goes for Palin.

[Dollface]

26. I think he is being very shrewd with an eye to his future. Following are his political contributions

which appear to work toward his self interest.

WILLUMSTAD, ROBERT B
NEW YORK,NY 10043 CITIGROUP 4/8/04 $2,000 Schumer, Charles E (D)
WILLUMSTAD, ROBERT B
NEW YORK,NY 10043 CITIGROUP 2/7/03 $2,000 Shelby, Richard C (R)
WILLUMSTAD, ROBERT B
NEW YORK,NY 10043 CITIGROUP/PRESIDENT/COO 10/18/03 $1,000 Keep Our Majority PAC (R)
WILLUMSTAD ROBERT
CITIBANK,NY 10043 CITIGROUP/DIRECTOR 7/18/03 $1,000 Oxley, Michael G (R)
WILLUMSTAD, ROBERT
NEW YORK,NY 10021 CITIGROUP 4/11/05 $2,000 Sununu, John E (R)
WILLUMSTAD, ROBERT
NEW YORK,NY 10021 CITIGROUP 6/4/04 $2,000 Crapo, Mike (R)
WILLUMSTAD, ROBERT
NEW YORK,NY 10043 CITIGROUP 11/23/03 $2,000 Dodd, Chris (D)

[bobthedrummer]

30. For those that desire justice and truth here's a must read AIG article

by Lucy Komisar, it was posted on Corp Watch November 17, 2004 (shortly before some economists using analysis of the M3 bluntly stated that the US was bankrupt)

"Cooking the Insurance Books"
http://www.corpwatch.org/article.php?id=11657aig

Don't forget that the new guy, Liddy was a partner with Donald Rumsfeld at Searle-they are all CRIMINALS.

[Overseas]

31. Wow, what a hero. Refused the 22 million they were gonna pay for THREE MONTHS' employment.

THREE MONTHS !!

He can give up the $22 million, probably because he has another $100 million set aside from working elsewhere at his OVER A MILLION PER MONTH salary level.


But sure, in this era of mega-greed, that act seems unusually honorable.

[LeftHander]

34. But gets to keep undisclosed signing bonus.....

Billion probably....

[JerseygirlCT]

35. Wow. A little integrity? Is it possible? nt

[panAmerican]

36. He refused, but SOMEBODY would have allowed him to take it! WHY???

In the grand scheme of things, $22mln is chump change compared to what we are on the hook for as taxpayers. However, my real problem is with either the compensation committees, boards, judges, or whomever would have allowed these payments to proceed.

Shouldn't there be some hand that comes down and say "No more!" when the company is in trouble to the point of needing a bailout? So that would mean no bonus, no perks, no nothing except a reasonable (what the average Joe would consider reasonable) salary until the mess is straightened out?

[PA Democrat]

38. Interlocking directorates

CEOs and members of the boards of directors are a cozy little boys club. They all serve on each others boards and help each other out when it comes to approving these obscene compensation packages.

[indio55555]

39. He probably read about the Indian CEO......