AIG's Benmosche to Get Paid

WASHINGTON (TheStreet) -- AIG's new CEO is going to get paid.

The $10.5 million pay package for American International Group's(AIG:NYSE) new CEO, Robert Benmosche, is expected to be formally approved by Kenneth Feinberg, the Treasury Department's special master for compensation, as early as next week, the Wall Street Journal reports, citing people familiar with the matter.

Feinberg has given the insurer an "approval in principle" to pay Benmosche an annual salary of $7 million and up to $3.5 million in incentive pay. Feinberg is expected to formally OK Benmosche's pay before making any other rulings about pay at AIG or at any other companies he is reviewing, the Journal reports.

Feinberg has two months to make his rulings on the pay packages, the Journal notes, but AIG had been pushing for a speedier ruling on Benmosche over concerns he might quit if the issue wasn't resolved quickly. Earlier this month, a person close to Benmosche said the CEO was "ready to walk" if the pay issue wasn't settled.

Benmosche is the former chief of insurance company MetLife(MET:NYSE).

-- Reported by Joseph Woelfel in New York.

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