The Obama administration's pay tsar has indicated he will take a tough stance on executive pay at AIG, the state- controlled insurance group that sparked outrage over its bonus payments earlier this year.
Kenneth Feinberg, the “special master” for pay at companies that have received government support, has raised concerns inside and outside AIG by putting pressure on the company to alter some pay plans.
People close to the situation said regulators had expressed fears that a crackdown on AIG could impel executives to leave, further harming the company's prospects and the chances of taxpayers' money being repaid.
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