There ought to be a law. That would be legislation which limits what public company CEOs get when they are fired. Maybe the limit should be $1 million. How much is failure really worth?
The departing head of American International Group (NYSE: AIG), Martin Sullivan, will pick up $47 million as he hits that door. According to the FT, "Mr Sullivan's departure was deemed a resignation for "good reason", according to AIG." His "good reason" was that the board would not allow him to stay in the building. What better excuse can a man get?
Sullivan can hardly be blamed for taking the money and retiring about his yacht to hit golf balls into the ocean. The AIG board shoulders that burden. The chairman of that board, Robert Willumstad, took Sullivan's job. Maybe it was easier to move up to CEO with Sullivan fat and happy.
But, there ought to be a law.
Douglas A. McIntyre is an editor at 247wallst.com.
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Reader Comments (Page 1 of 1)
7-02-2008 @ 11:30AM
gerald vaughn said...
Stay away from this insurers products they are a bad faith insurer and don't pay what they owe or at all on claims. "AIG Won't Soon Forget Me". Tim Fowler in the Tempe,AZ claims office kiss my as".
7-02-2008 @ 5:49PM
ed said...
it should be a criminal offense when BOARD OF DIRECTORS permit the criminal act of giving outrageous compensations to CEOs...this is always regardless of performance...
should not CEOs be held to the same standard of pay for performance like the rest of society??
7-02-2008 @ 4:04PM
winslow said...
Doug
Aren't there any politicians that read your column?
Why do I get the feeling there is no one looking out for the direction this country is taking. I suppose if I were a politician with a good income and benes, I could put on a good job of pretending to work for change.