WH: $7M AIG Exec Salary Not a Problem
(CBS)
"We're not micromanaging these companies," says White House Press Secretary Robert Gibbs. He says the government "is not making these decisions."
Federal pay czar Kenneth Feinberg is said by the company to have approved in principle of the compensation plan for CEO Robert Benmosche.
Asked why taxpayers "shouldn't feel like suckers if they see the CEO of a government-owned company getting $7 million a year," Gibbs acknowledged that AIG is "a royal mess." But he said the company's board wants "good, competent leadership that can lead the company back toward profitability."
The government now owns about 80 percent of AIG, and Gibbs said it hoped new management can help taxpayers recoup some of the investment they put in to prevent an economic calamity.
At $7 million a year, CEO Benmosche will be earning 17.5 times as much as President Obama, whose salary is set by Congress at $400,000 per annum.
Back in January, reacting to big money bonuses some Wall Street bankers were giving themselves, Mr. Obama called it "shameful" and the "height of irresponsibility."
He said they needed to show some "restraint," "discipline" and "sense of responsibility."
Gibbs conveyed no presidential outrage or backlash about the AIG salary.
A White House official sought to justify the $7 million paycheck, saying "compared to the salary of other CEOs in similar companies and industries, the (pay) package provided an appropriate amount of compensation."
The official also pointed out that $4 million of the salary is in the form of stock – "which more closely aligns the CEO's compensation with the performance of the company."
Benmosche is also eligible to receive a bonus of up to $3.5 million in stock, which the White House official points out is "entirely dependent on AIG repaying US taxpayers."
(CBS)
Popular in Politics
- IRS' Lerner: "I have not done anything wrong" 675 Comments
- Drones, Gitmo part of broad Obama counterterrorism speech
- House passes GOP bill to speed Keystone XL pipeline approval
- Christie: Keep politics out of Oklahoma disaster relief
- Former Miss America might challenge McConnell
- Obama to view Oklahoma tornado damage Sunday
- WH says criticism of its handling of IRS story is "legitimate"
- Amid scrutiny of commerce pick, White House confident about her fate
...REVOLUTION becomes the call.
It is sickening and shocking but not surprising, to witness what we Americans as well as the entire world is currently witnessing. And that is the obvious continuing and wrongful collaboration by business and government's being in bed together.
Are these appropriate examples that our political/lawmakers, together with our business leaders, and even our judiciary, set for our nation during such a tremendous economic fall?
The answer and commentary to the above question is self-evident. Our government and our business leaders are not only selfish, corrupt, greedy, dishonest, crooked, etc, but it has become more than apparent that they and our entire legal system are ROTTEN TO THE CORE!
It is with great regret that replacement of such powerful, elite, 'protected' individuals and the system that sustains them...
...should be overhauled - or will it be overTHROWN!?
"WHEN HONEST, MIDDLE-OF-THE ROAD.." Don't try to drag "middle of the road" people into you twisted sense of reality. Professing "revolution" has never been an option with current middle-of-road thinkers. - Overhauling the government and business leaders? Maybe - But not "overTHROWN"! This revolution you speak of is not consistent with middle of the road or moderate political thinking - SO LEAVE THEM OUT of your rants and raves...........
and its board members are off the hook! what happen, with our homes that foreclose, auto's repo, and so called "secured retirement investments". As the legal business morales are practiced, I get to owe the entire balance for the house, car, and whatever else that might be deemed as a obligated deth, but when my $ i trusted to invest is gone. Its just that, GONE!
What's wrong with $400,000.00 a yr. until the bailout money is paid, All the executive's should have to be held accountable for this on going slack of operations duties. Just like the federal aviation inspectors, not doing their job, (planes falling out the sky) what about congress salaries? This is Off the hook! Rediculous Paid salary, with all expensives paid, including several vacations, Complements of, The Tax Payer'. Wheres Our BailOut Loan, Since We Got to pay for it anyway! I'm sure WE THE PEOPLE" would love the chance to pay more taxes, with a base salary of 3 to 10 million a year,and all expensives paid. NO PROBLEM if u don't do the job right, you are supposed to get the can, not promoted!
"Not Mircomangement" Its hard to tell from where i stand,our rules have been changing everyday. Most of the robberies that i had, have been by legal business. ROBBED BY MAIL, PHONE, AND IN WRITING, WHAT A WORLD!
It appears our new president has committed yet another reversal of a stated position!
How's about starting him at $400,000 and giving him RAISES if and when he does anything to DESERVE the huge salary?
Starting him out 'at the top' when he's done NOTHING yet, is sheer insanity! AND, ANOTHER giveaway to the Wall Street banker-set!
Wouldn't be so much of an issue if Bush had left well enough alone and let AIG fail.
.
"The White House admitted today that even in the rosiest of scenarios about the outcome of the government's $85-billion bail out of insurer American International Group Inc., taxpayers will likely get the short end. "The taxpayers will be paid back first," said White House Press Secretary Dana Perino (Bush's Press Secretary!) in talking about the federal government's new 80% stake in AIG at the daily White House briefing. But when a reporter noted that taxpayers "may not be paid back at all," Perino acknowledged, "That is true."
Now who's got foggy memory??? Strange how certain you your mindset is myopically focused w/no peripheral vision whatsoever. Had nothing to do with Bernanke, Geittner, and the Democratic-led Congress...this all happened BEFORE Obama took office. Well, at least to people that bother to check before opening their mouths; and I'll just bet that you're still not convinced...