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AIG General Counsel Who Protested Meager $500K To Have Her Bluff Called, Get Sacked

Tyler Durden's picture




 

It appears the only thing worse in this world than a measly $500,000 salary is getting no salary at all. And that's exactly what is about to happen to AIG General Counsel, Anastasia Kelly, who before joining the bankrupt firm, was a GC at such reputable organizations as MCI/WorldCon (sic) and Fannie Mae. To paraphrase the objections against a very prominent Treasury Secretary recently, the question is not whether or not she will leave the job, the question is how she got it in the first place. Kelly, who recently was protesting the $500k salary cap imposed by Pay Despot Ken Feinberg, yet was in Benmosche's black book, will likely be out of the organization, presumably involuntarily, by year end. We are confident that with the economy rocking she will be able to find a job that pays her much more in line with her true skills... which based on her track record hopefully involves more than leading three sequential companies straight into bankruptcy.

More from Bloomberg:

Kelly, 60, said in a Dec. 1 letter she was prepared to
leave AIG by yearend because of impending compensation
restrictions, and the insurer hasn’t sought to keep her, said
the people, who declined to be identified because an
announcement hasn’t been made. Michael Leahy, a lawyer who works
at AIG’s New York headquarters, is among candidates being
considered to succeed Kelly, said one of the people.

Kelly joined AIG in 2006 to help the insurer recover from
regulatory probes that led to the retirement of former Chief
Executive Officer Maurice “Hank” Greenberg. Kelly, former
general counsel at MCI/WorldCom and Fannie Mae, didn’t endear
herself to AIG’s current CEO, Robert Benmosche, who took over in
August, the people said.

The five executives who said they may resign are Kelly;
Rodney Martin, who heads a non-U.S. life unit; William Dooley, a
senior vice president in charge of the financial-products
division; Nicholas Walsh, head of the non-U.S. property casualty
operations, and John Doyle, who is in charge of the U.S.
property casualty unit, the people said.

This is the most surprising part: how is this woman in the firm to begin with:

Kelly was among managers in a September 2008 e-mail listing
people who should be dismissed over AIG’s near-collapse,
according to Fortune magazine.
The so-called “kill list” was
written by then-controller David Herzog, now chief financial
officer. He urged former CEO Robert Willumstad to “clean the
slate” for his government-appointed successor, Edward Liddy,
the magazine reported.

When you have little to lose you may as well make a stand against getting paid like a simple peasant. Even if at the end of the day your bluff gets called. Like in this case.

And in case you feel bad for Kelly's severance package- don't:

The executives’ severance awards may equal as much as two
years of salary and bonuses, AIG said in a June regulatory
filing. Leahy and Mark Herr, a spokesman for AIG, declined to
comment. Kelly didn’t immediately return a phone call and e-mail
seeking comment.

Nothing changes - the taxpayer-funded existence of those that who destroyed this country continues.

 

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Tue, 12/08/2009 - 20:00 | 157250 Hephasteus
Hephasteus's picture

You better pay UP!! YOU BETTA RECOGNIZE the SKILLZ!!!!!

Oh crap they found out my skillz.

Tue, 12/08/2009 - 20:02 | 157254 Rainman
Rainman's picture

Uh Oh. The lawyers know where all the really stinky decomposed bodies are buried. And she has a large graveyard to pick through with FNM and AIG.

I see a book signing in her future. Sigh. Disgust.

Tue, 12/08/2009 - 20:02 | 157255 deadhead
deadhead's picture

Probably would make a great prosecuting attorney at the SEC.

Tue, 12/08/2009 - 20:38 | 157310 tip e. canoe
tip e. canoe's picture

comment of the day dh

Tue, 12/08/2009 - 21:24 | 157378 reading
reading's picture

Well, if nothing else, her black widow track record might drive the SEC right into the abyss -- that'd be the greatest achievement yet!

Tue, 12/08/2009 - 20:08 | 157268 Kurtieboy
Kurtieboy's picture

This is a perfect example of what is wrong with the system and why it is doomed to fail.

Tue, 12/08/2009 - 20:12 | 157274 Shameful
Shameful's picture

Is she retarded?!?!  I know the legal profession looks like a war zone right now, and a lot of guys would be more then willing to step in at 500k.  A lot of GCs make in the 100-150 range so that pay is even high by their standards and I'm damn sure work expectations are lower then at a big firm.

Tue, 12/08/2009 - 20:37 | 157309 Mad Max
Mad Max's picture

In all seriousness $500k, while very high GC pay at most companies, is probably low for an organization as large and troubled as AIG.  And work expectations may be just as high if not higher than for a senior partner at most big firms.

Tue, 12/08/2009 - 20:51 | 157338 Shameful
Shameful's picture

Granted, but the profession is in for massive bloodletting, now is not the time to leave a high paying GC spot.  And it's not like having her name associated with a list of epic failures will have the firms beating down the door to make her a partner. 

I will politely disagree about the work and billable hours though, especially now, when there is work they are expected to work like fiends.  It's possible she might be able to find a higher paying job it to me seems like one hell of a risk in a profession full of hungry, nutty, overachieving, and debt soaked people.

Tue, 12/08/2009 - 23:12 | 157475 Mad Max
Mad Max's picture

At age 60 I am guessing this is more of a "take this job and shove it" than someone really looking for a higher paycheck somewhere else.  I generally agree with your points but AIG is so troubled right now I don't think I would want to be its GC for a measly $500k a year (which is far more than I make now).

As for hiring her, I wouldn't think about it, but I've seen so many BAD hiring decisions by biglaw firms that I wouldn't be surprised if she shows up at an Amlaw 100 smiling.

As for biglaw generally, the meltdown is starting and likely to get more intense later in 2010.  Law firms are a huge lagging indicator on the downslope.

Wed, 12/09/2009 - 07:38 | 157654 Ned Zeppelin
Ned Zeppelin's picture

As an attorney familiar with the operations of the big boys, the rise of law as a profession has been strictly a "bubble" phenomenon, and is overdue for a correction.  Easy credit led to a transactions bulge, and litigation inevitably arose as things went sour here and there, but the only growth area for now will be bankruptcy.

Tue, 12/08/2009 - 21:34 | 157394 reading
reading's picture

Seems to me a $50 an hour lackey from some two bit firm in poughkeepsie could have done a better job at ensuring the interests of AIG than this quack.  Let's get real people, it is seriously time to call a spade a spade -- she clearly sucked at her job and does NOT deserve to be treated like an invaluable asset that cannot be allowed to leave. 

Tue, 12/08/2009 - 20:20 | 157285 Astute Investor
Astute Investor's picture

Killed the czar and his ministers

Anastasia screamed in rage...

Tue, 12/08/2009 - 20:20 | 157286 ghostfaceinvestah
ghostfaceinvestah's picture

Wow, I have worked at some failed institutions in my past, but WorldCon, Fannie, AND AIG?  is she sure she never worked at Enron?

Good riddance.

Tue, 12/08/2009 - 23:50 | 157509 Anonymous
Anonymous's picture

LOL--how much would Zerohedgers chip in to pay her salary if she goes to Goldman?

Tue, 12/08/2009 - 20:24 | 157290 assumptionblindness
assumptionblindness's picture

I am sure that Citigroup could use someone of her "experience."

Tue, 12/08/2009 - 20:32 | 157300 Anonymous
Anonymous's picture

Someone with her qualifications would have no trouble finding a top-flight job in either the food service or housekeeping industries.

Although counter-intuitively her karma index is suggesting she could just as easily get hit by a bus tomorrow.

Wed, 12/09/2009 - 01:45 | 157589 Anonymous
Anonymous's picture

Hey, I resemble that remark. Nyuk, nyuk...

I AM in the food service industry (Chef), and I have decided that I will not, under any circumstances, hire anyone who had previously worked at GS, AIG, C, or any other such company, just out of spite. Besides, I only hire people who actually know how to work, and who have had actual work experience. Fleecing the flock of their hard-earned nest eggs, no matter how strenuous, does not constitute actual work in my book. Well, if they were desparate, I would deign to allow them to clean out the grease traps, but I would make it a rule that the dress code is an Armani suit, power tie optional.

Tue, 12/08/2009 - 20:35 | 157306 Mad Max
Mad Max's picture

Hey, $500k in NYC is like $250k in Des Moines.  And we all know how rough it would be to live on that. :)

Tue, 12/08/2009 - 20:45 | 157327 Anonymous
Anonymous's picture

More like $75K in Des Moines.

Tue, 12/08/2009 - 20:41 | 157318 Anonymous
Anonymous's picture

SKILLS ? We don't need those skills. Let them go find a job with the mob or cartel where their "SKILLS" will be useful.

Tue, 12/08/2009 - 20:44 | 157325 Unscarred
Unscarred's picture

We are confident that with the economy rocking she will be able to find a job that pays her much more in line with her true skills... which based on her track record hopefully involves more than leading three sequential companies straight into bankruptcy.

I totally disagree with prevailing sentiment on this one.  Kelly is definitely the victim here, not the perpetrator.  The hand writing was on the wall long before 2006.  And her prior employment?  Chalk it up to "wrong place, wrong time."  If anything, they brought her in because they knew full well what was coming, and they needed a seasoned veteran to navigate the governmental waters.

Oh, by the way, can I get a 10-spot from ya, Kelly?

Tue, 12/08/2009 - 20:49 | 157330 jzang77
jzang77's picture

HAHAHA what a joke what a brilliant piece of satirical, sarcastic writing. Ahhh comedy, sad but true.  I LOVE THIS SITE!! 

Tue, 12/08/2009 - 21:05 | 157356 sysin3
sysin3's picture

Don't let the screen door hit you in the ass on the way out, bitch.

Tue, 12/08/2009 - 21:12 | 157365 Anonymous
Anonymous's picture

I guess if somebody constructed an index under her name for shorts,he would have the best return in the last decade....

Tue, 12/08/2009 - 22:11 | 157418 ghostfaceinvestah
ghostfaceinvestah's picture

Good point.

TD, PLEASE tell us where she ends up next.

Tue, 12/08/2009 - 22:16 | 157423 Anonymous
Anonymous's picture

500,000 here in the south will provide us with about 16000 per year living for one year's wages for the next 15-20 years.

Such greed. I myself would not mind taking 500K to sit down, shut up and sign whatever it handed to me by the Board.

Tue, 12/08/2009 - 22:29 | 157435 Bubby BankenStein
Bubby BankenStein's picture

Astounding how this dross gets scraped from one shit pot to the next.  God damn severance pay?  Kick their shitty asses out the fucking door.

Tue, 12/08/2009 - 22:54 | 157460 Anonymous
Anonymous's picture

oh for crap's sake....you don't think there won't be a few million usd in tarp money falling out of her overstaffed gucci handbag on her way out the revolving doors?? please....no one is hurting on this deed....

Tue, 12/08/2009 - 23:08 | 157472 Anonymous
Anonymous's picture

She must suck cock as good as she sucks at picking companies to work for..

Tue, 12/08/2009 - 23:19 | 157484 Anonymous
Anonymous's picture

Historical Exec Comp Yr. Salary Bonus(USD)
MCI INC 2004 675,000 839,400
MCI INC 2003 252,500 504,300
SEARS ROEBUCK & CO 2002 509,000 519,000
SEARS ROEBUCK & CO 2001 500,000 254,000
SEARS ROEBUCK & CO 2000 475,000 633,000
SEARS ROEBUCK & CO 1999 387,000 582,000

BBG Source...dumb da dumb dumb

Tue, 12/08/2009 - 23:44 | 157504 Anonymous
Anonymous's picture

Someone thought she was worth her compensation, but that doesn't mean she was worth it for the shareholders. Corporations serve the executives. Did she save anyone’s bonus or keep anyone out of jail?

Wed, 12/09/2009 - 00:00 | 157517 Sqworl
Sqworl's picture

Im sure she will end up as a Director at the SEC...Revolving door, but first she must make a money pitstop at FINRA collect her million dollar pay day, then go onto the SEC for retirement...

Wed, 12/09/2009 - 02:18 | 157601 Anonymous
Anonymous's picture

We can only hope that she gets hired on with GS.

Wed, 12/09/2009 - 03:22 | 157621 Rick64
Rick64's picture

Maybe AIG is about to turn things around and she wanted to keep her record intact.

Wed, 12/09/2009 - 08:13 | 157674 Astute Investor
Astute Investor's picture

Maybe she's a logical replacement for Turbo Timmy?

Wed, 12/09/2009 - 08:42 | 157677 57-71
57-71's picture

I don't know this person, however I see alot of people in my work life. After an intent look at her picture, my instinct tells me this woman has a problem with alcohol. Certainly her performance record would bear out an issue of some kind.

Wed, 12/09/2009 - 08:59 | 157684 Anonymous
Anonymous's picture

Did anyone from Fannie or AIG go to jail for corruption ?. She's done her employers well since Worldcom then, staying ahead of the cops... Ohhh nevermind, what cops ?. Who am I kidding.. I need to get with their program... How can I possibly make ends meet with only $500k.. OMG I is so po..

Wed, 12/09/2009 - 09:57 | 157708 loki
loki's picture

story about Feinberg lifing salary cap after this bitch whined about it..

 

http://www.businessweek.com/bwdaily/dnflash/content/dec2009/db2009128_90...

This was on the breaking news on Bloomberg last night, then vanished...

Can you fucking believe this??

Wed, 12/09/2009 - 11:11 | 157812 Anonymous
Anonymous's picture

The Peter Principle is alive and well. So many unqualified receive good paying jobs and promotions. It seems to be the primary motivator of many employers.

Why pay anyone as distinguish as her... MCI/Worldcom indeed. You are doing a hecka of a job brownie.

Wed, 12/09/2009 - 11:36 | 157857 Anonymous
Anonymous's picture

This is some story. And they say the Eu is in trouble! FNMA just cranks out the idiots like her and Franklin Raines. It is an American idiot factory. I am certain BenMosche and Feinberg will find a nice replacement for Kelly after discussing with orszag, geitner, summers, shapiro, bair, emmanuel, axelrod, cass sumstein. Nothing to see here....

Wed, 12/09/2009 - 11:38 | 157859 Anonymous
Anonymous's picture

Here is my rule: you keep working at this firm free until the debt is paid. You want to leave? You cant; you are banned from finance and law for 20 years. You have to know how to deal with these new yorkers- with an iron fist.

Thu, 11/11/2010 - 20:52 | 720839 Susancai
Susancai's picture

She is very excellent with many skills. Wish her more successes! job |advertising|discount mattresses

Wed, 12/22/2010 - 15:06 | 824456 billdavid
billdavid's picture

Still wonder what is wrong with the system and why do things not work out? Guys this is a perfect example of what the "system" is in these times. ecommerce web site design

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