New AIG CEO to earn $7m a year

NEW YORK: American International Group Inc's new CEO will be paid a yearly salary worth $7 million and could earn millions more in performance-based incentives, the bailed-out insurance giant said.

Robert Benmosche will receive $3 million in cash and $4 million in stock under his annual compensation package, AIG said in a filing with the Securities and Exchange Commission.

During the credit crisis last fall, the government rescued AIG from the brink of collapse with a bailout package worth up to $182.5 billion. The government now owns roughly 80 percent of the huge insurer. AIG is now shedding assets and cutting costs as it restructures.