Robert Benmosche Considers Stepping Down As AIG’s (AIG) CEO
November 11, 2009 8:59 AM
The Wall Street Journal reports that the government controlled insurer AIG’s (NYSE: AIG) chief executive, Robert Benmosche announced that he would like to step down from his post, just after three months at his job. This was received with shock by most of the board members.
Robert Benmosche is apparently worried over the Obama administration’s recent compensation review and the problem of employee retention. Robert Benmosche is said to have announced even earlier, in August, that he would step down, when his compensation of $10.5 million, including $3 million in cash, one of the largest compensations in the Tresury Department’s history, was not finalized by the Obama administration.
A new CEO would mean a fifth one in a row, in the last 18 months. All this shows a problem with government bailouts per se. Something similar is observed in another situation where Kenneth Lewis announced stepping down in September 2009, as he is not able to handle the government’s undue hand in the Bank of America’s affairs.
The Treasury cut 91% of cash compensations of AIG executives, since 2008. AIG has put in a proposal to revise this and also pay packages to its 75 top executives. AIG has not got everything it asked for, and moreover, filling up this sudden vacancy is sure going to be a problem.
