HR/ BENEFITS

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AIG HR Chief Steps Down

December 31, 2009 (PLANSPONSOR.com) - Anastasia Kelly, who supervised the human resources unit at American International Group (AIG), has left the company over a compensation dispute.

An AIG news release said Kelly, who also managed the company’s legal, corporate affairs and corporate communications departments, stepped down from her post as of Wednesday.

The company said Kelly was contesting the reduction in her base salary as mandated by Special Master for Executive Compensation for TARP Recipients Kenneth Feinberg. Earlier this month, Feinberg capped annual cash salaries for most executives at the companies that received the biggest bailouts at $500,000, which would have reduced Kelly's pay "significantly," according to the Wall Street Journal.

In addition, AIG announced that Suzanne Folsom, chief compliance and Regulatory Officer, has left “to pursue other opportunities.”

Robert H. Benmosche, AIG president and chief executive officer said in the announcement that AIG expects a smooth transition and has started the search to replace both women. In the meantime, executives previously reporting to Kelly will report to Benmosche.

Kelly joined AIG in September 2006 as general counsel, responsible for the global legal, compliance and regulatory functions. She was promoted to vice chairman earlier this year.

Fred Schneyer
editors@plansponsor.com

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