Posted on 19 Jan 2010
Sen. Charles Grassley (R., Iowa) has asked the U.S. pay czar to explain why the recently departed general counsel of American International Group Inc. (AIG) will receive several million dollars in severance.
The giant insurer agreed last month to award ex-general counsel Anastasia Kelly an exit package totaling roughly $3.9 million, the bulk of which is severance, according to people familiar with the matter. Ms. Kelly resigned from AIG effective Dec. 30, the company said.
AIG determined Ms. Kelly was entitled to severance under terms of the company's executive-severance plan after her annual cash base salary was reduced to $500,000 under determinations made by the pay czar, Kenneth Feinberg.
"The taxpayers are fed up with massive payouts to executives at companies that took taxpayer money," said Mr. Grassley, the ranking Republican on the U.S. Senate finance committee. He called the payout a "windfall."
Spokesmen for AIG and Mr. Feinberg had no comment, nor did Ms. Kelly.