AIG’s Willumstad to walk away with $7 million
“I led AIG for three months and all I got was a lousy $7 million exit package,” a T-shirt designed for Robert Willumstad could read.
“I led AIG for three months and all I got was a lousy $7 million exit package,” a T-shirt designed for Robert Willumstad could read.
Mr. Willumstad, American International Group Inc.’s freshly booted CEO, will keep a $4 million cash bonus, one million shares of the company’s stock and six months of severance, plus life insurance and other benefits valued at about $40,000, David Schmidt, senior consultant at New York-based James F. Reda & Associates, told Bloomberg.
Mr. Willumstad replaced Martin Sullivan on June 15 after New York-based AIG limped through two quarterly losses totaling about $13 billion.
Before Mr. Willumstad’s tenure at the insurer, which began on June 15, he was chief operating officer at Citigroup of New York.
Institutional investors, including billionaire Eli Broad; Shelby Davis of Davis Select Advisors LP of Tucson, Ariz.; and Bill Miller, chairman, chief investment officer and portfolio manager at Legg Mason Capital Management Inc. of Baltimore, chased Mr. Sullivan out of AIG’s C suite, dissatisfied with the company’s progress during his tenure.
However, AIG’s share price continued to tumble during Mr. Willumstad’s reign, falling from $34.01 on June 16 to $2.05 as of yesterday.
A call to AIG for comment was not immediately returned.
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