New Head of Bailed Out AIG to be Paid $3 Million a Year

ABC's Dan Arnall reports from New York:

In a filing with the SEC, AIG has revealed that its new CEO Robert Benmosche will get an annual salary of $3 million in cash and $4 million in common AIG stock.

In addition he’ll get up to $3.5 million in “performance-based, long-term incentive” awards as determined by the company’s compensation committee. He’s not entitled to any severance – so no golden parachute.

Seems like the deal – which is sweet compared to the $1 compensation Ed Liddy got to do the job – has the blessing of Pay Czar Ken Feinberg. “The Special Master for TARP Executive Compensation has expressed approval in principle regarding the structure and amount of Mr. Benmosche’s compensation arrangements,” according to the filing.

Bloomberg reported last week that the new CEO is spending a few weeks in Croatia on vacation at the beginning of his tenure with the government-owned insurance giant. Taxpayers have already plowed $134 billion into the company.