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Washington, DC--- Congressman Paul Hodes today called on the Obama Administration to oppose new pay packages that could reward failed executives that drove our economy into the ditch. In a letter to pay czar Kenneth Feinberg, Congressman Hodes opposed the $7 million compensation package for AIG CEO Robert Benmosche that the Treasury Department recently approved. Congressman Hodes is committed to ensuring that executives at firms that received billions of dollars in taxpayer assistance in the Wall Street bailout are not rewarded with taxpayer-financed stock options and other forms of compensation.

"Failed executives at firms like AIG who devastated our economy do not deserve millions of dollars as a reward," said Congressman Hodes. "We should focus on creating jobs for working families in New Hampshire, instead of allowing Wall Street bankers and other executives to cash in millions of dollars in stock options. While I support the Administration’s new rules to limit executive compensation, we need to make sure that taxpayer funds are not used to line the pockets of those who are responsible for the current economic mess."

Congressman Hodes wrote, "While AIG is struggling to return to financial stability, the $7 million of the CEO’s salary in taxpayer funds should not have been spent on AIG, but on aiding struggling small businesses and working families in New Hampshire and across the country… Why were the interests of the taxpayers not taken into account?  AIG has benefited from billions of dollars while my constituents continue to struggle during this difficult economic recovery."

The full text of the letter is below:

Dear Mr. Kenneth Feinberg,

            I applaud the Administration’s steps in limiting executive pay to firms who accepted bailout funds.  However, I am disappointed in your approval of AIG’s CEO, Robert Benmosche, recently announced annual salary of $3 million in cash and $4 million in fully vested stock.

The new CEO of AIG took over AIG on August 10, 2009, from his predecessor Ed Liddy whose salary was $1 a year.  Mr. Liddy voluntarily agreed to this salary because of the huge amount of funds AIG accepted that was being paid for by the taxpayers. 

AIG was the largest recipient of taxpayer assistance through the Troubled Assets Relief Program (TARP).  According to TARP’s Special Inspector General Neil Barofsky, AIG has received over $180 billion.  While AIG is struggling to return to financial stability, the $7 million of the CEO’s salary in taxpayer funds should not have been spent on AIG, but on aiding struggling small businesses and working families in New Hampshire and across the country.

An October 22, 2009 Reuters article reported that you approved this compensation package.  Why were the interests of the taxpayers not taken into account?  AIG has benefited from billions of dollars while my constituents continue to struggle during this difficult economic recovery.

I respectfully request to be informed of how you approved this compensation package and what plans have you have in the future to better protect and oversee taxpayer funds.  I encourage you to inform these financial institutions that TARP funds were meant to help our economy, and not their wallets.

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