NEW YORK (
American International Group's
new CEO Robert Benmosche will receive $7 million salary -- a far better deal than the $1 his predecessor earned.
Benmosche, who started the job on Aug. 10, will receive $3 million in cash and $4 million in common stock, according to a filing on Monday. He is also eligible for as much as $3.5 million a year in stock as part of a long-term incentive program.
Benmosche, the former
leader, is ineligible for severance on termination of his employment for any reason. But he can receive a prorated bonus for 2009.
After receiving a hefty $85 billion bailout from the government, AIG must comply with new pay regulations imposed on companies that have received the largest loans under the U.S. Treasury's Troubled Asset Relief Program.
It's up for debate -- a debate that presumably will soon come -- as to whether or not the $7 million is too hefty for flailing AIG, which is being forced to sell asset after asset in order to repay its massive government loan.
During his last year as CEO for MetLife in 2005, Benmosche received a $1.1 million in salary, $6.25 million in bonus and about $8.8 million in long-term incentive pay.
The previous AIG CEO, Edward Liddy, cut his salary to a single dollar in November 2008 after AIG received the bailout. His total compensation in 2008 was $460,478.
In 2007, Martin Sullivan received total compensation of $13.9 million, which included a base salary of $1 million and a cash bonus of $3.6 million.
-- Reported by Jeanine Poggi in New York.
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