AIG Executive Pay Rankles Banking Consumers
The Reuters headline reads “AIG Returns to Pre-Bailout Paydays for CEO, Top Executives,” and consumers were already ranting on Sunday on Facebook about entitled financial services giants cheating the taxpayer. Despite the night-and-day differences between retail banks and financial giants like AIG, consumers don’t follow such delineations and now may be the time for banks to market their brands to consumers as responsible, customer-first entities.
This may be especially true because that main article trending on Facebook, by Suzanne Barlyn of Reuters, includes a caution from her sources that AIG may be taking big financial risks again for short-term gain so that its new CEO can collect on the giant pay package listed below. AIG took a $182 billion bailout in 2008. Barlyn writes on Sunday:
In addition to a $16 million annual package for 2017, [AIG CEO Brian] Duperreault received $12 million in cash for shares he forfeited from Hamilton Insurance Group Ltd, an insurance company he co-founded and led in his native Bermuda. On top of that he got options to buy up to 1.5 million AIG shares dependent on the share price hitting certain targets over the next seven years.
AIG also agreed to pay Hamilton $40 million to get Duperreault out of a noncompete agreement and bought the company’s U.S. unit for $110 million.
Excluding the sign-on award, Duperreault’s annual package is similar in size and structure to what CEOs of major rivals Prudential Financial Inc (PRU.N) and MetLife Inc (MET.N) received for 2016.
Proactive Financial Services Brand Awareness Marketing Options
Retail banks can let consumers know what sound financial decisions are happening, as well as how they’re protecting their customers’ accounts. For example, while mandated insurance programs may be an “of course” in-house, now may be the time to explain their benefits to consumers who may be considering peer-to-peer investing, instead.
Reactive Financial Services Brand Awareness Marketing Options
Retail banks can let consumers know that they’re guarding their customers’ accounts by not taking big financial risks, as well as letting them know their executives’ compensation packages.
Some banks may have already instituted such campaigns in the wake of the Wells Fargo situation.
What do you think, marketers?
Please respond in the comments section below.
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