AIG counsel to get millions of dollars in severance pay

Written by Reuters | New York | Updated: Dec 31 2009, 05:01am hrs
American International Group Inc is preparing to pay its departing general counsel several million dollars in severance after she resigned over federal pay curbs, the Wall Street Journal reported on Monday.

The insurer determined that Anastasia Kelly was entitled to the money under the companys severance plan, whose terms say certain executives can resign and collect severance if their pay is reduced significantly, the Journal reported, citing people familiar with the matter. AIG officials could not be immediately reached by Reuters outside regular office hours. AIG is about 80% owned by US taxpayers.

The Journal said Kelly was among five executives who notified the insurer that they were prepared to resign and collect severance benefits if their pay was cut sharply by the US pay czar. The four others rescinded their threats.AIG is expected to name a new general counsel soon, the newspaper reported.