Treasury Tweaks Pay Limits at Citi, AIG

One highly paid employee of the American International Group Inc. won't be leaving the company as planned before yearend, prompting the Treasury Department to revise a recent decision on pay limitations at the company.

In a letter to AIG dated Monday, Treasury pay czar Kenneth Feinberg said he will allow AIG to pay the employee — among the company's 25 highest compensated — about $4.3 million in incentive payments.

That's on top of an annual $450,000 salary.

The incentive payments would be in two parts: one an annual long-term restricted stock grant of $1 million and another stock payment valued at $3.3 million on the grant date, according to the Treasury's letter.

In a separate letter to Citigroup, the Treasury modified its pay ruling to allow Citigroup to pay expatriate compensation to five instead of four employees, as had been written.

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