$7m and then some for AIG’s new chief exec

Government-backed insurer AIG has told the US Securities and Exchange Commission (SEC) that it will pay its new chief executive Robert Benmosche $7m (£4.3m) a year, according to Reuters.

Additionally, Benmosche could also earn millions of dollars in performance bonuses. His pay will consist of $3m in cash and $4m in stock.

Benmosche replaced former chief executive Edward Liddy this month. “AIG and American taxpayers are fortunate to gain the commitment of Bob Benmosche, a highly experienced executive who understands the challenges and opportunities of restructuring complex organisations,” Liddy said.

The SEC has since revealed that it has questioned AIG’s disclosures on derivatives months before the insurer’s bailout last September. A series of letters between April 2008 and June 2009 were posted on the SEC’s website this week. They refer to an “apparent inconsistency” in the way AIG described the risk of losses from credit default swaps it sold to European banks.