AIG OKs Pay Package for CEO Benmosche

NEW YORK (TheStreet) -- American International Group(AIG Quote) will implement a previously announced pay package for CEO Robert Benmosche in which he will receive an annual salary of $3 million in cash and $4 million in AIG stock.

As part of the pay package, Benmosche signed a noncompete agreement, and told the AIG board he was committed to staying at the insurance company, according to the Wall Street Journal and other publications.

Earlier this month, the Journal reported that AIG's Benmosche was considering stepping down as CEO. Named to the post three months ago, Benmosche was reported to have been upset over constraints being placed on AIG by the U.S. government, which owns 80% of AIG since it was rescued last year.

Benmosche "is committed to leading this company as CEO until the job is done," AIG Chairman Harvey Golub said in an interview following a board meeting Tuesday, the Journal reports. "The board is very satisfied that the commitment is real and heartfelt."

Under the pay agreement AIG announced Tuesday, Benmosche will receive the stock in bi-weekly awards that will vest immediately. Benmosche is restricted from selling the shares for five years from his hire date of Aug. 10, 2009.

The AIG CEO also will be eligible for yearly performance-based bonuses of up to $3.5 million under the pay package.

-- Reported by Joseph Woelfel in New York .

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