NEW YORK (AP) - American International Group Inc. CEO Robert Benmosche received $2.7 million in compensation for 2009 as the bailed-out insurer began selling assets to repay government loans, an Associated Press analysis of a securities filing shows.
Benmosche, 65, received $1,153,964 in salary and a restricted stock bonus worth $1,536,402 that can't be cashed in for three years, the company said Monday in an annual proxy filing with the Securities and Exchange Commission. He received no cash bonus.
Benmosche took over as CEO in August. His 2009 pay is a prorated amount of his previously announced $7 million pay package, including an annual salary of $3 million plus $4 million in AIG common stock.
Companies like AIG that hold government bailout funds are subject to limits on executive pay. In AIG's case, the rules cover the insurer's 100 highest-paid employees.
The New York-based insurer last year cut the salaries of three top executives, including Chief Financial Officer David Herzog, to comply with the rules. But it got approval for Benmosche's pay package from federal pay czar Kenneth Feinberg.
AIG was bailed out in September 2008 by the government as the financial crisis spiraled out of control. The insurer has received aid packages with a total value of $182.5 billion from the government. In return for that financial support, the government received an 80 percent stake in AIG.
The company was undermined by its underwriting of risky credit derivatives contracts. A plunge in the value of those contracts was the primary driver of AIG's near-collapse.
The lack of a 2009 cash bonus and the three-year vesting period for Benmosche are similar to a moves made by other financial firms. The 30 top executives at Goldman Sachs, for example, got no cash bonuses last year, instead they received stock that cannot be sold for at least five years.
Benmosche's pay package also included $14,164 in perks, mainly for personal use of the company car.
The Associated Press calculations of total pay include executives' salary, bonus, incentives, perks, above-market returns on deferred compensation and the estimated value of stock options and awards granted during the year. The calculations don't include changes in the present value of pension benefits, and they sometimes differ from the totals that companies list in the summary compensation table of proxy statements filed with the SEC.
AIG has been working for the past year and half to sell assets and streamline operations in an effort to repay government debt. Last month, it sold its American Life Insurance Co. division, or Alico, to MetLife Inc. for $15.5 billion. Earlier in March, it said it would sell its AIA Group unit to Prudential PLC for $35.5 billion.
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