AIG CEO Rejects $22 Million Severence Package

[FourScore]

AIG CEO Rejects $22 Million Parachute; Will Others Follow?
By ALICE GOMSTYN
ABC NEWS Business Unit
Sept. 23, 2008

Who in his right mind would walk way from an eight-figure severance package? Try AIG's Robert Willumstad.

Former AIG CEO Robert Willumstad, citing shareholder and employees losses that resulted from AIG's drop in shares, has declined to accept $22 million in severance from the ailing insurance giant. If proposed federal legislation is passed, other top executives could give up some of their compensation too -- albeit, not voluntarily.

{ABC News)Willumstad, 63, served as the chief executive officer of ailing insurance giant American International Group from June until he was replaced earlier this month. He was eligible for a severance package of $22 million, but in a Sunday e-mail to his successor, Edward Liddy, he said that he would decline the package.

"I prefer not to receive severance payments while shareholders and employees have lost considerable value in their AIG shares," he wrote in an e-mail, according to a person familiar with the situation...

...Given this year's turmoil in the stock and credit markets, AIG is far from the only firm to see massive drops in share value. But don't expect executives from other financial firms to follow Willumstad's example, at least not voluntarily, said Robert Reich, the former U.S. labor secretary under President Clinton and a professor of public policy at the University of California at Berkeley.

http://abcnews.go.com/Business/MarketTalk/story?id=5861458&page=1

[gateley]

1. Wow. nt

[originalpckelly]

2. It's amazing what sympathy someone will show when their neck is on the line.

I think we're seeing a man who didn't want to become victim number 2 of the populous pistus offus.

[XOKCowboy]

3. Well good for him...

A CEO with a conscience. Imagine that.

[JuniperLea]

4. It was three month's work... he would have looked really bad taking that...

Even if AIG wasn't in crisis mode. He could have walked away with it, though. I hope this serves as a lesson for the rest.

[juno jones]

5. He probably already has enough.

And doesn't want to be investigated deeper.

An interview with investigative reporter Lucy Komisar:

http://spitfirelist.com/

Featuring the brilliant investigative journalist Lucy Komisar, this program highlights the use of “Offshore” entities to evade taxes, maximize corporate profits and finance a variety of criminal enterprises. Much of the first side of the program consists of analysis and discussion of insurance giant AIG and its prolific use of “offshore” scams. In addition to presenting AIG’s pioneering development of “captive” reinsurance companies to launder profits and evade taxes, the program highlights AIG’s use of Coral Reinsurance for a variety of illegal gambits. It should be noted that AIG’s illegal operations have been aided by a number of powerful and influential people. Much of the second side of the program consists of review of the pivotally important Clearstream network, and its use by intelligence agencies, corporations, criminal syndicates and terrorist organizations.

The reason they had so little money on the books- they've stuffed the lot of it into offshore banks where it is unaccounted for. These bastards are getting us coming and going.

PS with thanks to Dr Debug and his voluminous diary. A lot of familar names pop up there....

[SoCalDem]

6. He's probably been tagged as an "expert" helper in the unraveling of the scheme down the line..

& will be paid from the 700B slush fund Paulson's begging for:(