AIG (American International Group) said Monday that it agreed to pay new Chief Executive Robert Benmosche an annual salary of $7 million. The compensation consists of $3 million in cash and $4 million in fully-vested common stock of AIG, the insurer explained in a regulatory filing.
Benmosche will also be eligible for a performance-based, long-term incentive award of up to $3.5 million a year in the form of stock or phantom stock units in AIG, the company added. Benmosche won’t get any severance on termination of his employment for any reason.
The government’s Special Master for TARP Executive Compensation has approved the pay package in principle, AIG said in the filing. The compensation agreement has been submitted for review and approval as required by regulations from the Troubled Asset Relief Program, the company said.