Five AIG Execs Threaten To Walk Over Pay

In a continuing scuffle with the government's compensation czar, Kenneth Feinberg, five highly-ranked executives at American International Group Inc. (NYSE: AIG) have threatened to leave the company if their pay is cut significantly, according to a report in the Wall Street Journal.

Feinberg is charged with governing the pay limits of top executives at companies that received the most taxpayer bailout money.

The one executive named in the Journal report was general counsel Anastasia Kelly, along with the heads of some of the firm's largest insurance businesses.

Executives at the company are concerned that the benefits that they have enjoyed will be cut to comply with the government restrictions, with growing worries that the pay limits will become stricter in 2010.

This news comes after the company's newly hired CEO, Robert Benmosche, threatened to walk last month over the limitations being placed on pay for top AIG executives. Benmosche warned the government that the bank would not be able to prosper and pay back the loans if top talent is not necessarily compensated.

The Journal stated that Benmosche appeared to have nothing to do with the recent threats of departures.

AIG is one of the largest recipients of federal aid, and is now 80 percent owned by the government. The taxpayers have contributed $182 billion in bailout money to AIG.

Shares of AIG are valued at $30.12 before the market opens on Monday.

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