New York: Troubled insurer American International Group (AIG) has said it will pay an annual pay package of USD 7 million (around Rs 32 crore) in cash and stock combined to Chief Executive Officer Robert Benmosche.
Benmosche would receive an annual salary of USD 3 million
in cash and USD 4 million in AIG common stock as per the
previous agreement on August 17, AIG said in a statement.
As part of the compensation agreement, Benmosche would be
restricted from selling the shares for five years from his
start date of August 10, 2009, the statement added.
The US government currently holds 80 percent in AIG, in
turn to over USD 180 billion bailout package given to the
insurer last year. As part of the rescue package, the US
government would also keep a tab on the remunerations received
by the executives of the struggling firms.
Benmosche, former chief of MetLife, had taken the charge
of beleaguered insurer in August, replacing Edward M Liddy.
Reportedly, Benmosche was considering leaving the post of
AIG CEO due to the pay curbs imposed by the government on the
the company's executives.
Obama administration's pay czar Kenneth Feinberg in
October had slashed 2009 pay packages for 13 top AIG
employees, which reportedly had left Benmosche "frustrated."
According to the The Wall Street Journal, Benmosche has
now signed a "non-compete agreement", a sign that he is
committed to his role in AIG until the job is done.
PTI
First Published: Wednesday, November 25, 2009, 19:34