American International Group’s ex-CEO Robert Willumstad has rejected a $22-million severance package from his former employer.
Willumstad e-mailed his successor, Edward Liddy, that he would decline the package since he had been unable to execute a restructuring plan before the government had to step in to avert AIG’s collapse, the Wall Street Journal reported.
“I prefer not to receive severance while shareholders and employees have lost considerable value in their AIG shares,” he wrote.
Willumstad, 62, had become chief executive on June 15, after Martin J. Sullivan was ousted. AIG’s stock price declined 97% during his three-month tenure.
The newspaper also reported that major AIG shareholders, concerned about the proposed government takeover, were meeting today to discuss alternatives to the $85-billion federal bailout, citing an unnamed source.
Shareholders who are dissatisfied with the deal are exploring ways to quickly pay off the loan, which gave the federal government the right to take 80% of the insurer. Under this scenario, AIG would not only sell assets, but also raise capital in other ways, potentially leaving shareholders better off.
AIG had no choice but to accept the federal help last week, when large sums of private money were unavailable.