Benmosche

AIG's CEO, Benmosche is threatening to leave because his salary is being too closely regulated by the government. Benmosche has already threatened to step down as AIG's CEO multiple times, and is adding to the unstable atmosphere at AIG. If he's going to step down, he should just stop talking about it and do it. However, if Benmosche does step down, it is possible that AIG's recent recovery efforts will be disrupted. The $10.5 million pay package offered to this already wealthy individual does not seem like that bad of an offer.

He is more complaining about the salary restrictions on his employees. His salary since being finalized, is the largest compensation package approved by the Treasury department. However, he "told AIG’s board last week he may quit because caps on compensation hurt his ability to retain staff", which is more understandable. This is an interesting example of how separate and distinct the businesses and public policy makers are. Whether or not you believe Benmosche is correct in his frustration, it brings up an interesting disconnect.

If Benmosche steps down it would be AIG's fifth CEO change in less than a year and a half. This is both bad because it shows the company cannot find stability in upper management and good because it shows that the company is capable of turning profits as it has done for the last two quarters even with this instability. This might suggest that even if Benmosche steps down, there might not be much of a change in the every day operations at AIG. Secondly, this is not only a problem facing AIG, but also other institutions bailed out by the government. For example Kenneth Lewis will step down at the end of 2009 as the CEO of BoA for similar reasons and BoA's directors are having trouble finding a replacement for him.

-Group 3
WSJ Article