From Market Watch:
SAN FRANCISCO (MarketWatch) — New York Attorney General Andrew Cuomo said Wednesday that American International Group Inc. … agreed to freeze payments under its former chief executive’s contract. Cuomo sent a letter to current CEO Edward Liddy confirming that AIG will freeze any payments under ex-CEO Martin Sullivan’s $19 million contract, and will not make payments out of $600 million in compensation and bonus pools of AIG’s financial products subsidiary. Cuomo said that taxpayers should be repaid before any executives and that new executive pay structures should eliminate improper incentives
Not sure that freezing means the CEO will never get any money, and it is also unclear to me whether all of the executives at AIG will have their bonuses frozen as well.
Finally, I question what it means to say “taxpayers should be repaid” — at this point the bailout plan is so murky, the phrase seems meaningless to me. Will our taxes go down? Will we all get checks in the mail?
What a circus. Send in the clowns. Oh … don’t bother. They’re here.