On Friday, Senator Chuck Grassley (R-IA), Ranking Member of the Senate Committee on Finance, sent a letter to Kenneth R. Feinberg, Special Master for Compensation for the Troubled Asset Relief Program (TARP) inquiring as to why news reports indicate that American International Group (AIG) ex-officer Anastasia Kelly "will receive between $2.8 million and $3.8 million in severance" following her resignation from AIG on December 30, 2009. Sen. Grassley stated that "the situation as reported surrounding Ms. Kelly and her severance is deeply troubling news," especially in light of Ms. Kelly's "voluntary resignation" and the fact that Mr. Feinberg previously placed of an annual limit of $500,000 on certain executive salaries at TARP recipients.
Sen. Grassley requested Mr. Feinberg to provide the following information for review:
- The date Ms. Kelly joined AIG and her salary on that date.
- A complete promotion and salary history for Ms. Kelly through the date of her departure from AIG, including relevant dates.
- The salary that that she was scheduled to be paid at the time of her resignation and whether she was a member of the Senior Executive Officers or Most Highly Compensated Group at AIG, or a member of another group of highly compensated employees.
- The amount of Ms. Kelly’s severance, the formula under which it was determined, the salary on which her severance was based and her salary on the date of her resignation.
- A copy of the AIG Executive Severance Plan that governs this matter and all previous versions of the plan back to the date Ms. Kelly joined AIG. Include copies of all severance plans or arrangements signed by Ms. Kelly.
- The amounts and dates of all severance payments already paid to Ms. Kelly and all severance payments, if any, scheduled for the future, including relevant dates.
- All actions taken to modify, amend and/or terminate the AIG Executive Severance Plan as it existed Mr. Feinberg assumed his duties as Special Master.
- If known, all actions taken by the Board of Governors of the Federal Reserve, the Federal Reserve Bank of New York and the Department of the Treasury to modify, amend and/or terminate the AIG Executive Severance Plan as it existed on or after September 16, 2008.