The AIG Saga: Joe Cassano’s Performance-Based Compensation

Cassano raked in $280 million over an eight year period beginning in 2000. That's an average of $35 million a year - pretty good even by professional athlete standards. Keep in mind that his salary and bonus were based on the scale of business generated by his virtually unmonitored unit. Cassano and his colleagues siphoned off 30 percent of every dollar generated in his (non insurance) division. The more they wrote, the more they made. And because AIG was so well collateralized, the company did not have to back up the risks with outside capital. Sweet. Like stealing candy from a blind man, right?