We Are Getting Hit Today Based On the 4 Executives Leaving AIG....
and going to work for Warren Buffett....I would be interested to know their motivations for leaving, although I am nearly certain that is a money talks issue. Ajit Jain (Buffett's #1 insurance guy) makes about $10 million per year, whereas Peter Hancock (one of the guys leaving) made $1.82 million last year. I worked at AIG last year, and I know for a fact they had some pay increase restrictions and a smaller bonus pool when I was there....I believe Mr. Bemosche instituted a bonus claw back policy recently as well if executives make decisions that wind up hurting AIG financially down the line.
My thoughts about this are, hey if someone gets a bonus this year by writing credit default swaps that explode 3 years from now and damage the company, damn right they deserve to have their bonus money clawed back. This type of policy proptects shareholders. Anyone else have thoughts on their departures?
4 execs leaving...looks odd on its face, so ya there is a bit of market jitters till all the news comes out. I believe most have been with AIG for some time and the new bonus structure, clawback, are definitely a motivation to look. For one company to take 4 at once across difference regions, etc, is an indication that they received a sweet offer. They got recruited hard and off they went. Dont blame them. Companies are not as loyal as they used to be, so good for the exec to make more. Now just need to stock to rebound and move up from earnings and some visibility to divi and buyback timeframes. I would hope to see rebound at end of the day or on monday given no other market news say back to 41.25 to 41.50