U.S. Treasury subjects AIG to executive pay curbs
WASHINGTON (Reuters) - The U.S. Treasury said on Monday its $40 billion (25 billion pounds) investment in American International Group will subject the firm to the same curbs on executive bonuses and golden parachutes as other financial institutions that receive government capital injections.
In a statement, the Treasury said its $40 billion investment in AIG senior preferred stock was part of a comprehensive plan to restructure federal aid to the "systemically important company."
It said AIG must comply with the most stringent limitations on executive compensation for its top five senior executive officers under the Treasury's $700 billion financial rescue plan, enacted after the initial AIG bailout in September.
(Reporting by David Lawder)
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