New AIG Chief Could See Eight-Figure Paycheck

By Staff Report

Aug. 20, 2009

The new chief executive of embattled American International Group Inc. stands to collect as much as $10.5 million in annual compensation from his bailed-out employer.

Robert Benmosche, who replaced Edward Liddy, will receive an annual salary of $7 million consisting of $3 million in cash and $4 million in AIG shares.

In addition, the former MetLife CEO is eligible for up to $3.5 million in annual bonuses that would be paid out in stock, according to a filing from AIG on Monday, August 17.

Though Benmosche’s pay package is lavish by most any standard, it illustrates how things may be changing on the CEO pay front now that compensation arrangements must be approved by Kenneth Feinberg, the Obama administration’s “pay czar” who signed off on the AIG agreement. For comparison’s stake, after Vikram Pandit became Citigroup’s CEO in late 2007, he was awarded $38 million in compensation.

In addition, Benmosche, 65, must make do without the perks to which CEOs have grown accustomed, including golden parachute payments or gross-ups, which are extra payments companies make to cover the taxes incurred from awards to executives.

Of course, he can afford it: Benmosche pocketed more than $150 million during his tenure atop MetLife from 1996 to 2008.

Benmosche’s bonus payments are also subject to being clawed back if AIG determines they were awarded based on materially inaccurate financial statements or other performance metrics that later prove bogus.

AIG has received about $180 billion in taxpayer-funded assistance, or double the amount doled out to Citigroup and Bank of America combined.

Filed by Aaron Elstein of Crain’s New York Business, a sister publication of Workforce Management. To comment, e-mail

Stay informed and connected. Get human resources news and HR features via Workforce Management’s Twitter feed or RSS feeds for mobile devices and news readers.


blog workforce

We build robust scheduling & attendance software for businesses with 500+ frontline workers. With custom BI reporting and demand-driven scheduling, we help our customers reduce labor spend and increase profitability across their business. It's as simple as that.

Book a call
See the software

Related Articles

workforce blog

Employee Engagement

12 practical employee appreciation ideas for better engagement and retention

Summary Showing appreciation to your employees improves engagement and retention. There are 12 practica...

employee appreciation, engagement, HR, raccoons

workforce blog


California fast food workers bill: why it’s more than meets the eye and how to prepare

Summary: California signs bill establishing a “fast food council” that has the power to raise the indus...

workforce blog

Employee Engagement

7 statistics on employee turnover in 2022 every HR manager should be aware of

Summary July 2022 saw 5.9 million total separations – More Replacing a full-time employee can cost up t...

employee retention, employee turnover