Business

Feinberg eyeing AIG salary hikes

Kenneth Feinberg, Uncle Sam’s paymaster, will exempt some executives at AIG from a $500,000 salary cap after at least five employees threatened to quit because of the limits, people familiar with the matter said.

Feinberg may issue a ruling as early as next week on pay limits for 75 of the bailed-out insurer’s executives, the people said. The compensation ruling could mean that some AIG executives among the 75 might earn bigger salaries than those in a group that Feinberg ruled on six weeks ago, who were previously the highest-paid employees. The $500,000 limit has so far applied to everyone at AIG except Chief Executive Officer Robert Benmosche, who has a $7 million salary.

“All they’re doing is increasing what may be considered guaranteed pay by bulking up salary,” Frank Glassner, CEO of Veritas Executive Compensation Consultants, said.