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 September 17, 2008 Liddy Replaces Willumstad at AIGCLICK HERE FOR A RECENT INTERVIEW WITH EDWARD LIDDY
After three months at the helm of AIG, Robert Willumstad is losing his job as CEO to Edward Liddy, a former Allstate CEO.
Willumstad originally planned to announce on September 25 his plan to restore stability to the ailing company, but was cut short. "The rating agencies today are the governor of how much capital we have and how much capital we need," Willumstad said in an interview with Reuters.
Willumstad loses his job in the midst of the U.S. government’s $85 billion rescue package for the insurer, according to Reuters. AIG on Tuesday received a two-year loan of up to $85 billion from the U.S. Federal Reserve. The loan is so that AIG can settle its debts without disastrous affects to the economy.
The U.S. government will take a 79.9 percent equity stake in AIG, which has about $1.05 trillion in assets and employs 116,000 people in over 100 countries.
It is unclear how much severance Willumstad is expected to receive. He was awarded a $1 million annual salary, and a possible $21 million in annual bonus and incentive awards. He also received restricted stock and options once valued at $36.5 million, according to Reuters. Tags: willumstad (2) aig (28) edward liddy (3) allstate (3) u.s. government bailout (1) u.s. treasury (9) fed (21) federal reserve (37) $85 billion loan (2) credit crisis (94) worsening economy (1) (398)
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Comments:
WOW A 60 MILION DOLLAR IN SALARY AND BONUS FOR 3 MONTHS? (That doesn't take into consideration his severence pay package). I think that every bail out by the Feds to AIG and companies like that should make as a stipuulation that all chief executives of the firm receiving a federal bail out should give up their entire bonus including serverence packages. Why should we, as taxpayers give such chief executives such hugh amounts of money while we are subsitizing their companies and their bonsus.
September 17, 2008 7:34 PM