NU Online News Service, Oct. 6, 2:50 p.m. EDT
American International Group President and Chief Executive Officer Robert Benmosche will receive an annual salary that could reach up to $10.5 million, according to a proposal submitted by AIG and approved by Kenneth Feinberg, the Special Master for TARP Executive Compensation.
Mr. Feinberg, who was appointed by President Barack Obama to be the so-called "pay czar," wrote in a letter to AIG's Compensation and Management Resources Committee that the total compensation package was determined to be appropriate "when compared to the total compensation packages of other applicable presidents and chief executive officers of similarly situated companies."
Mr. Benmosche's salary consists of a $3 million cash salary per year, stock salary of $4 million per year and long-term incentive awards of up to $3.5 million.
In his letter, Mr. Feinberg said the stock salary "is determined to be performance-based because the value of such stock salary will be determined by the value of the company's stock over the long term and cannot be sold until [August 10, 2014]."
The long-term incentive award is also performance-based, Mr. Feinberg wrote, and "will not vest unless Mr. Benmosche continues to provide services to the company for two years following the grant date of the award, and will be subject to an annual performance" by AIG's compensation committee.
Mr. Feinberg also added that "any and all incentive compensation paid to Mr. Benmosche will be subject to recovery or 'clawback' if the payments were based on materially inaccurate financial statements or any other materially inaccurate performance metrics."
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.