New York: The Obama administration is expected to approve annual pay package of around $10.5 million for beleaguered insurance firm AIG’s chief Robert Benmosche by next week, says a media report.
Attributing to people familiar with the matter, The Wall Street Journal said that the Obama administration’s pay czar is expected to formally approve the $10.5 million pay package for American International Group Inc’s new chief executive as early as next week.
The report said that AIG had received “approval in principle” from Kenneth Feinberg, the Treasury Department’s special master for compensation, to pay AIG CEO Robert Benmosche an annual salary of $7 million and up to $3.5 million in incentives.
But Benmosche wanted formal written assurance that his pay would be honoured and had been pushing for a speedy sign-off on his compensation, it added.
The report noted that Feinberg is expected to approve Benmosche’s pay ahead of making any other rulings about pay at AIG or at any other companies under his purview.
Feinberg is reviewing compensation packages for 25 highest-paid employees at AIG and six other firms which received significant amounts of government aid. Feinberg has two months to make his rulings on the pay packages.
AIG had been pushing for a speedier ruling on Benmosche over concerns he might quit if the issue was not settled quickly, the report said. Earlier this month, citing a person close to Benmosche, the daily said the CEO was “ready to walk” if the pay issue was not resolved.
Benmosche was pressing for a quick resolution in large part to energise AIG employees and show them that they could be well-compensated, the report said.
A furore earlier this year over bonus payments made to some AIG employees demoralised some employees and prompted some to quit.