The remark: “My b___ are bigger than the government’s,” according to the Wall Street Journal, was voiced by AIG CEO Robert Benmosche at a reception for AIG senior managers in Houston “apparently to make the point that he wasn't easily intimidated, say two people familiar with the matter.”
The restraint with which the Journal has written this article makes it a masterpiece of understatement. It even led to some confusion about which piece of his anatomy he was so proud of. At the head of the piece, the Journal coyly referred merely to “a part of his anatomy” without getting specific. This led me to feel that an early reference to AIG being a lightning rod for the pay issue was in somewhat poor taste, but as it turned out it was an innocent reference.
Mr. Benmosche also apparently swore so often in one meeting that attendees began to “keep a tally.”
Now this is a great story, especially over Christmas when we all need a good laugh, but the news that a CEO, particularly this CEO, swears and can make vulgar, macho remarks hardly comes as a great surprise.
And why is it no surprise?
Well, for contrast, when Edward Liddy, a retired insurance CEO who was positively showered with compensation by Allstate, his former company, stepped in to run AIG he did so for a nominal salary.
Mr. Benmosche, another retired insurance CEO, was also showered with compensation in his last job as CEO of MetLife, and he walked away with stock, cash and retirement income worth well over $100 million.
But Mr. Benmosche indicated very clearly to the government and AIG that he was not interested in working for a nominal salary and ended up with a huge package, worth $10.5 million a year. This kind of thing really puts Jeff Immelt’s remarks about the descent of the U.S. CEO from tough-mindedness into greed into stark perspective. Tough-mindedness is about more than using the F-word in meetings.
