AIG says pay makes no sense

AIG chairman Harvey Golub said that compensation limits imposed by US pay czar Kenneth Feinberg make “little business sense” and hurt AIG’s ability to repay its government bailout, Bloomberg reports.

“While we can pay the vast majority of people competitively, on occasion, these restrictions and his decisions have yielded outcomes that make little business sense,” Golub, 70, said of Feinberg.

“In some cases we are prevented from providing market-competitive compensation to retain some of our most experienced and best executives. This hurts the business and makes it harder to repay the taxpayers.”