AIG TO USE STOCK UNITS FOR 2009 SALARY GRANTS

New York-based AIG is to use stock units that mirror the value of AIG's common stock for 2009 stock salary grants to its executives, the company said in a regulatory news filing last week. The New York Times reported that Treasury pay czar Kenneth Feinberg had met resistance from some AIG executives last year, who had asked via then general counsel Anastasia Kelly to be paid bonuses in cash rather than stock, because AIG shares were seen by them as valueless. The NYT claimed that AIG executives, including CFO David Herzog, had insisted on keeping cash retention bonuses, despite Mr Feinberg's attempt to impose so-called salarized stock agreements.