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 The four others rescinded their threats.AIG is expected to name a new general counsel soon, the newspaper reported.