Kenneth Feinberg Backs Down on AIG Pay

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A day after it was reported that five AIG executives said they would be prepared to resign if their compensation was significantly cut, special master for compensation Kenneth Feinberg has decided to exempt "some executives" at the insurer from the proposed $500,000 salary cap. Who? Bloomberg doesn't know, but notes that "a person close to Feinberg said the exceptions were unrelated to the five executives’ threats to leave." Mm-hmmm. Incidentally, we bet that Feinberg cannot wait to retreat to a cabin somewhere and start choppin' some wood. [Bloomberg]