The decision is one of many broader moves made by the troubled New York-based insurer, which has been under pressure to restrict executive pay since accepting billions in government assistance to save it from collapse. AIG has received about $150 billion so far.
The company said there will be no 2008 annual bonuses and no salary increases through 2009 for AIG's top seven officers and no salary increases through 2009 for the 50 next-highest AIG executives. In addition to his $1 salary, Mr. Liddy will get an unspecified amount of stock.
In other news
OIL PRICES FELL nearly 7 percent Tuesday, to $50.77, and gasoline prices fell to $1.885 nationally, a level not seen since 2004.
RATES ON FANNIE Mae and Freddie Mac debt fell Tuesday -- a promising sign that home-owners' mortgage rates could decline, too.
GERMAN MEDICAL conglomerate Bayer will pay $97.5 million to settle U.S. government allegations that it paid kickbacks to medical suppliers to boost sales of its diabetes products.
CISCO SYSTEMS INC . will close most of its U.S. and Canadian offices for four days over the holidays as part of a plan to cut $1 billion in the current fiscal year.