The CEOs of Fannie Mae and Freddie Mac were refused the generous golden parachutes they'd been counting on when their respective enterprises were taken over by federal regulators, and most recently the replaced CEO of American International Group (AIG) voluntarily abandoned his $22 million severance package.
Robert Willumstad served as CEO to insurance giant AIG and could have taken his $22 million into a slightly early retirement at the age of 63, but he stated, "I prefer not to receive severance payments while shareholders and employees have lost considerable value in their AIG shares." What would you do in his position — would you walk away from this kind of package or take the money and move on?
David & Scotti
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I can see the move as a way to uphold his personal integrity. Sure he was there when AIG tanked. But if he took the $22 million and walked, it would appear like he's given up on everything and probably wouldn't be done in corporate earth. His departure would probably cause further disruption at AIG.
63 is young for someone in the financial area. Old players include Kirk Kerkorian, Warren Buffet, Carl Icahn, and Boone Pickens.
I would do as much damage control as possible and decline the $22M is probably a drop in the bucket compared to what can really be made out there.
But if someone was to walk up to me today and offer me $22M for me to quit my current job, you can bet without a shadow of a doubt that I'll take $22M.
122M will do a lot for the people who work under them for the company. Taking that money would have been a slap in the face for many employees. Robert Willumstad was spot on. I am sure his retirement is already fully funded for him to maintain his lifestyle.
2well i think that they kind of had to say no to it - seeing as how they were in a position of power and authority when the companies went bust. i would like to say that i would do the same, but i know that it would have been a VERY hard decision for me to make. i'm sure that they aren't hurting for $$ though. as CEOs of those companies, i feel like they had a high enough income over the years that they won't have to worry about money for a bit.
3For Willumstad, I think its the only right thing to do - things did not end well under his command. If I screwed up a job I was hired to do, or appeared to screw it up, I'd leave the money.
4That would be tough to refuse, but I'd rather have my integrity intact and be able to look at myself in the mirror than have a cush life.
5I'm going to have to agree with ilnac. Though refusing it was a huge step in the right direction, I doubt seriously he's wondering if he'll make his mortgage payment this month or whether he can only afford to fill his gas tank half way up.
6I'd like 22 mil, hell, $100k alone would do me right.
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