AIG Chief Threatens to Quit, Again

By: Dana Chivvis
Topics: AIG

AIG's Chief Executive Officer Robert Benmosche threatened to quit at a board meeting last week, saying it was too difficult to do his job with so much government oversight, the Wall Street Journal reports. He is particularly miffed at the compensation controls placed on the giant insurance company by Kenneth Feinberg, Obama's pay czar.

The government owns 80 percent of AIG after bailing it out last year. Benmosche and Board members met with Feinberg last week and reportedly discussed the difficulties in keeping talented employees while adhering to compensation regulations.

"Bob feels he is in an impossible situation," a person close to the matter told the Wall Street Journal.

(CBS/The Early Show)

This is the second time Benmosche, seen at left in 2005 photo, has threatened to abandon the company since he took over three months ago. The first time was in August, before Feinberg approved his $10.5 million compensation package – the largest one approved by the Treasury Department under new executive pay limits.

AIG owes American taxpayers about $90 billion. The company has showed signs of improvement recently, posting profits in the last two quarters.

Read more at The Wall Street Journal.

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by rockcutr November 12, 2009 7:06 AM EST: What a whiner....Dude,,,out here in the real world there are no employees that are unreplaceable. Seems your immoral belief system is getting in the way of your work ethic. Dude the 10.5 mil bonus breaks down to $841.34 per minuite. Who on the planet actually thinks this is fair and equitable? When you pull your head out of that warm place where you sit, hopefully you will fill your lungs with something other than sewer air because clearly your brain is being effected by the peutrid gas up your south end.; Reply to this comment


by Mokkie57 November 11, 2009 10:51 PM EST: Let's see AIG asked for help from the FED? TAXPAYER DOLLARS?

"Of all contrivances for cheating the laboring classes of mankind, none has been more effective than that which deludes them with paper money." - Daniel Webster.; Reply to this comment


by j_d_green November 11, 2009 6:51 PM EST: Why do these executives keep talking about maintaining talent? They wish to continue giving excessive pay and bonuses to individuals that ran these companies to near ruin (saved on the backs of the taxpayers). Since AIG is now 80% owned by the taxpayers, we should certainly have a say in the compensation package. Make it like military rank for enlisted, earn your stripes a little at a time (over time). My base pay in the Air Force when I first enlisted was $642/month (late 80's). Bonuses were initially meant to be based on performance. Now they are expected regardless of performance. If they don't like what is being offered, go elsewhere. Many executives have no sense of morality. How on earth can they expect bonuses when the companies are losing money? I hope his wife is doing the gardener and the pool boy.; Reply to this comment


by NdubuezeC November 11, 2009 5:45 PM EST: Cool. Let him quit. If not for the taxpayers funded bailout, there will be no AIG today. These are very trying times and it is only sensible and reasonable for these eggheads on Wall Street to tighten their belts the way Main Street is. If he wants to quit, let him quit. He is only going to jump to another Big Wall street firm and run that place down. This time, no more bailouts, no more 'too big to fail'. Run your firm down and it stays down. I hope the government will start investigating and prosecuting these idiots that ruin their companies hence running our economy down.; Reply to this comment

by U_S_Drug_Addict November 11, 2009 3:43 PM EST

im sure there are Foreign CEOs who would do a much better job for a fraction of the cost...

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by taxpayingvoter November 13, 2009 1:19 PM EST: You got that right. Get rid of the HARVARD EDUCATED CRIMINALS


by lami987 November 11, 2009 3:11 PM EST: Outsource those executive positions. That will save a lot of money. US executives are by far the highest paid in the world. After stealing from US tax payers and brought their companies to almost bankruptcy those talented misfits are still crying for more. They should be executed instead of giving them jobs.; Reply to this comment


by january53 November 11, 2009 2:34 PM EST: Poor little Bobby. Spoiled piece of S***!!!; Reply to this comment


by greggh2 November 11, 2009 2:22 PM EST: They keep using the excuse that they cannot keep good people if they don't compensate them properly. They were compensated well at one time and those talented people drove themselves out of business except for the taxpayers keeping their jobs. I think that they think that their crap doesn't stink and they are more valuable than they are. Pay back the taxpayer's bailout monney with a decent interest and then pay your highly talented crew whatever you wish. But NEVER come back with an outstretched hand.; Reply to this comment


by midlclass November 11, 2009 1:29 PM EST: here's a good lesson for all the other finacial Jack a$$'$ run the company right and honorable or the goverment gets involved and puts ya on a leach. cry me a river, i'll do it for a million a year. which already gives the company a 9 million increase in profits.; Reply to this comment