The Treasury Department's pay czar has approved a pay package worth as much as $10.5 million for the chief executive of American International Group Inc., the company said in a regulatory filing this week.
Robert H. Benmosche will receive an annual salary of $7 million, consisting of $3 million in cash and $4 million in common stock of AIG, the struggling insurance giant told the Securities and Exchange Commission.
In addition, Benmosche will be eligible to receive performance-based incentive payments of up to $3.5 million in company stock each year.
The company announced that Kenneth R. Feinberg, the Treasury's special master overseeing executive compensation at bailed-out companies, had "expressed approval in principle" of Benmosche's pay package.
AIG, along with other large bailed-out companies, had until Friday to submit proposals for how it would pay its top executives going forward. Feinberg cannot cancel the contracts but has the power to report excesses to Congress.
Executive compensation is a touchy issue for AIG. The company, which has been granted nearly $183 billion in government assistance under the Troubled Asset Relief Program and other initiatives, received severe criticism when it later announced that it would pay $165 million in bonuses to employees of its financial services division.
That division was widely seen as making bad bets on housing-related derivatives. The collapse of the market for those products caused the near-collapse of the company and prompted the multi-billion dollar bailout package.
Robert H. Benmosche will receive an annual salary of $7 million, consisting of $3 million in cash and $4 million in common stock of AIG, the struggling insurance giant told the Securities and Exchange Commission.
In addition, Benmosche will be eligible to receive performance-based incentive payments of up to $3.5 million in company stock each year.
The company announced that Kenneth R. Feinberg, the Treasury's special master overseeing executive compensation at bailed-out companies, had "expressed approval in principle" of Benmosche's pay package.
AIG, along with other large bailed-out companies, had until Friday to submit proposals for how it would pay its top executives going forward. Feinberg cannot cancel the contracts but has the power to report excesses to Congress.
Executive compensation is a touchy issue for AIG. The company, which has been granted nearly $183 billion in government assistance under the Troubled Asset Relief Program and other initiatives, received severe criticism when it later announced that it would pay $165 million in bonuses to employees of its financial services division.
That division was widely seen as making bad bets on housing-related derivatives. The collapse of the market for those products caused the near-collapse of the company and prompted the multi-billion dollar bailout package.
published August 19, 2009, 0 Comments
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