Departing AIG counsel gets millions as she exits – so goes the headline in the Wall Street Journal, announcing the news that Anastasia Kelly, the resigning general counsel of AIG, will collect a golden parachute.
I’m a little bewildered by this news.
There are several pieces of legislation that prohibit severance for executives departing from companies in receipt of bailout money. These include EESA (Emergency Economic Stabilization Act) and ARRA (American Recovery and Reinvestment Act).
So how is Ms. Kelly in line for severance?
That’s, like, illegal, isn’t it?
Paul Hodgson - Senior Research Associate
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