American International Group (AIG) has raised the salaries for its Chief Financial Officer (CFO) and a senior insurance executive. In a regulatory filing last Friday, the company announced the 2010 pay packages of CFO David Herzog and Kristian Moor, who leads AIG’s global property-and-casualty-insurance business.
David Herzog would receive an annual cash salary of $495,000 and annual stock salary of $4.49 million in 2010. Additionally, he is eligible to receive up to $1.02 million as a long-term incentive award this year.
Kristian Moor would receive an annual cash salary of $700,000 and annual stock salary of $5 million in 2010. The long-term incentive award that he is eligible to get is as much as $1.9 million this year. The pay package became effective as of Jan 1, 2010.
According to a regulatory filing, Mr. Herzog’s annual cash salary was $350,000 and stock salary was $3.1 million in 2009. Mr. Moor’s annual cash salary was $450,000 and stock salary was approximately $4.69 million.
AIG received federal support worth $182.5 billion, which helped prevent its collapse in Sep 2008. The company came under the scanner by the public after it paid out $165 million as bonuses to its employees in Mar 2009.
Following the public outcry, Kenneth Feinberg was appointed to supervise the compensation and bonus packages of the executives of AIG and some other companies, all of which had received significant amounts of taxpayers’ money.
Last year, Mr. Feinberg had reduced the AIG executives’ salary levels significantly. The pay packages have also been limited this year. While some of the executives have experienced increases from the 2009 levels, some of them have suffered reductions of salary levels.
Only 5 individuals from the group have been permitted to receive cash salary above $500,000 for the year. However, on an overall basis, the cash component of the pay packages would be reduced substantially this year.
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