According to the Wall Street Journal:
"The executive [Benmosche] is chafing under constraints imposed by AIG's government overseers, particularly a recent compensation review by the Obama administration's pay czar, Kenneth Feinberg, according to the people. AIG, 80% government owned since a rescue last year, is one of the companies under Mr. Feinberg's purview.Last week, Mr. Benmosche and other AIG board members met with Mr. Feinberg in New York. During the three-hour meeting, board members discussed difficulties of complying with pay policies and retaining talent at the company. Mr. Benmosche's frustrations 'hit a crescendo,' said a person familiar with the matter."
Seriously? When the federal government with taxpayer money bails out an insurance giant for ridiculously reckless decision making (in the subprime and credit default swap markets), with dozens of billions of dollars, that government is not entitled to or supposed to provide compensation oversight? Really?
And Benmosche's primary argument is that the "talent" is leaving AIG for better pay elsewhere. Again, seriously? He cannot pay to keep the talent at AIG? Is this the same talent that torpedoed the company, which would be in receivership, but for the government bailout? Perhaps Benmosche and other corporate executives decrying the executive compensation limits, should reconsider what "talent" need be hired to revive the failures of the previous "talent."