Robert Benmosche

  • 14 Mar 2014 at 2:29 PM

Bonus Watch ’14: Robert Benmosche

Benmosche, 69, earned a $6 million cash incentive, 50 percent more than his target, the New York-based insurer said yesterday in a regulatory filing…AIG revamped pay plans for executives last year to link compensation to performance after the end of restrictions tied to a U.S. government bailout. AIG repaid the rescue in 2012 and advanced 45 percent last year, beating the 30 percent gain of the Standard & Poor’s 500 Index. The plan “aligns the economic interests of our executives with the long-term interests of AIG and our shareholders,” the insurer said in the filing. Benmosche received a $2.3 million salary and $6.5 million in stock awards, bring his total compensation to $14.8 million, That’s 40 percent more than he earned a year earlier. [Bloomberg]

Septebmer 24, 2013: “The uproar over bonuses was intended to stir public anger, to get everybody out there with their pitch forks and their hangman nooses, and all that–sort of like what we did in the Deep South [decades ago]. And I think it was just as bad and just as wrong.” October 11, 2013 “The vilification of a person or a group of people is not right. It’s never right, and when it happens it should not be trivialized or dismissed lightly, as it too often was in the context of AIG. And when I referred to the South, I unintentionally trivialized a horrible legacy of our country. That was the opposite of my intent.”

The uproar over bonuses “was intended to stir public anger, to get everybody out there with their pitch forks and their hangman nooses, and all that–sort of like what we did in the Deep South [decades ago]. And I think it was just as bad and just as wrong.” [MoneyBeat via DI]

  • 11 Dec 2012 at 5:47 PM

AIG’s Remaining Bailout Reduced To Rounding Error

A while back I built a spreadsheet to do math about AIG, and it took me a long time and led to basically one short post with what I still think was a rather lovely blobby picture, so I’m just going to shamelessly reuse that spreadsheet with slight updates and be all OOH LOOK AN IRR:

So yeah: as the AIG bailout saga comes to its sort-of conclusion, we can sort of conclude that the government made a 5.6% return on its money. Assumptions etc. in the original post; the accounting profit ties out reasonably well, if you squint, with the Treasury’s official math.

Herewith some random observations and questions on AIG:1 Read more »

Robert Benmosche: We Showed This World A Thing Or Two

“Dear Colleagues,” Robert Benmosche wrote in a memo to AIG employees today. “We come together as a company to celebrate in good times and we draw together in times of shared crisis. Today warrants a celebration like no other in AIG’s history and places well in the past a crisis none of us will ever forget…Today the US Department of the Treasury has priced an offering of approximately 234.2 million shares of AIG common stock at a price to market of $32.50 per share. Upon the closing of this transaction, expected this Friday, Treasury will have sold the last of its remaining shares of AIG common stock, receiving proceeds of approximately $7.6 billion from the sale. The closing of this transaction will mark the full resolution of America’s financial support of AIG…It is one of the most extraordinary - and what many believed to be the most unlikely– turnarounds in American business history. And you did it…You did this. Every single man and woman at AIG did this remarkable thing. There is a saying in American life, there are no second acts. Well, take a bow, because today marks our second act.” [Dealbook]

“People are angry because they want to blame somebody else. They don’t take responsibility for their own goddamn lives. ‘I’ve never been promoted, because they don’t like me and there were these guys at AIG, look at them they have free lunches and EZ Pass and look at me I don’t get a free lunch.’ These people make me nuts. Get off your goddamn ass and do something. That’s what the people at AIG did, They picked up their asses and went to work.” [Pressler, related]

After the Great Auto CEO Debacle of 2008, the government had put its foot down on private-jet use by CEOs of TARP-supported companies, and when these onerous restrictions threatened to thwart his ability to make his granddaughter’s birthday party in Chicago, he exploded. “I said to Jim, ‘Here is the deal,’ ” he recalls. “ ‘I’m going to go and see my granddaughter, and I’m going to take that plane and shove it up your fucking ass. And everyone else’s ass. You are going to break my banana over this shit?’ ” [NYM]