Feinberg has been so adamant about keeping compensation down that he apparently pushed the CEO of AIG (NYSE:AIG) to the point where he threatened to resign. AIG cannot keep its top talent of it cannot pay a competitive wage, or so the story goes. Even the chairman of GM and the board of Bank of America (NYSE:BAC) have said pay caps may keep them from getting the best talent on the market.
Feinberg blinked, a little. Yesterday he said that if he saw a huge drain of talent from the Wall St. firms he oversees that he would reconsider his pay philosophy. He added that he was witnessing nothing of the sort. “If I saw some mass exodus, which I do not anticipate, that would require me to rethink some of the basic assumptions that have entered into my determinations,” Feinberg told Reuters.
Douglas A. McIntyre
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