Treasury Green Lights AIG Exec Pay

Bailed-out firm American International Group (AIG) will be allowed to be flexible their compensation packages for certain high-paid employees, Reuters reports.

Patricia Geoghegan, Troubled Asset Relief Program's special master for executive compensation, still needs to approve pay packages for the top 100 earners at the four remaining companies that have received exceptional government assistance from the $700 billion program.

Geoghegan already reviewed the pay packages for the top 25 executives at the bailed-out firms, at which time she said some individual compensation packages increased, while some decreased and others remained at 2010 levels. Overall, the cash compensation for these 25 executives decreased 18.2%, and their total direct compensation decreased 1.3% from 2010 levels.

As for AIG, INN reported in late-March that AIG President and CEO Robert Benmosche was awarded his full incentive of $3.5 million, all while earning $7 million in cash and stock for 2010, according an the insurer's regulatory filing.

Reuters reports that the compensation structure for the next 75 highly paid employees was approved with minor modifications, and a significant portion of compensation must be based on performance in order to receive Geoghegan’s approval.

 

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