AIG Announces Restrictions on Executive Compensation

In response to New York AG Cuomo's inquiry last week, AIG announced voluntary restrictions on executive compensation that include a $1 salary for its Chief Executive Officer; no 2008 annual bonuses and no salary increases through 2009 for AIG's top-seven-officer Leadership Group; and no salary increases through 2009 for the 50 next-highest executives, in addition to other bonus, severance and retention award restrictions.  In a letter to Mr. Cuomo, CEO Edwary Liddy noted the importance of "fair and reasonable incentives" to retain staff.  He also stated that no taxpayer dollars would be used for annual bonuses or future cash performance awards for the top 60 members of management.