NEW YORK — American International Group on Tuesday said it will go ahead with a previously announced pay package for new chief executive Robert Benmosche of $7 million in cash and stock.
Benmosche, who took over as CEO of the embattled insurer three months ago, will receive an annual salary of $3 million in cash and $4 million in AIG common stock under the pay agreement.
AIG is under close government scrutiny after receiving a bailout package worth up to $182.5 billion from the government in exchange for an 80 percent stake in the company. That bailout package also includes restrictions on compensation for the insurer’s 100 highest-paid employees.
Earlier this month, a Wall Street Journal report said Benmosche had threatened to leave his post as he struggled to deal with the heavy government oversight and restrictions on what the bailed-out company could pay employees.
Benmosche acknowledged frustrations with the oversight in a letter to employees but said he plans to stay on the job.
The Wall Street Journal reported online Tuesday that Benmosche signed a noncompete agreement and reiterated at a board meeting his commitment to stay as CEO. AIG didn’t immediately return calls for comment.
The CEO’s compensation deal was approved by Treasury Department pay czar Kenneth Feinberg.
