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A Golden Parachute Doesn't Open
Western finance teeters. Wall Street has vaporized. The U.S. government has effectively nationalized large swaths of the financial industry. Now for something really unexpected: A C.E.O. has voluntarily forsaken his golden parachute.
Robert Willumstad, the former Citigroup executive brought in to try to salvage American International Group three months ago, has told A.I.G.'s board that he would not accept $22 million in severance it owes him, the Wall Street Journal reports.
The federal government pushed out Willumstad as part of its $80 billion bailout of the insurance giant last week. In an email to his successor, Edward Liddy, Willumstad declined his severance pay because he was unable to fully implement his turnaround plan before A.I.G. was taken over.
Willumstad, who watched helplessly as A.I.G.'s stock price plummet by 97 percent on his watch, told Liddy that it wouldn't be right for him to take the money when A.I.G. shareholders and employees lost so much.
His decision contrasts with that of his predecessor, Martin Sullivan, who was forced out in June. A.I.G. paid Sullivan $15 million in severance pay and a $4 million bonus. It also accelerated the vesting of long-term stock and cash incentives worth another $28 million.
by Andrea Chalupa
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