Maurice Greenberg, CEO of US insurance giant AIG and grand old man of the global industry, has reacted in typically direct fashion to the company’s recent September 11-induced lower profits. He’s frozen all executives’ pay and given up his own $9.4 million performance bonus.

An AIG statement said bonuses for managers “would not be appropriate” in light of $1.4 billion in claims from the destruction of the World Trade Centre, which led to a 19% drop in profit to $10.1 billion.

Mr Greenberg, who has led the firm since 1967, took his usual annual salary of $1.9 million but did not take his bonus worth US$5 million (AUD$9.4 million) for the two previous years.

Has the freeze spread as far as Australia? AIG Australia’s Regional Director for Human Resources, Carlo Galati, was aware of the new policy but says no one in the Australian branch is able to pass comment.