Robert H Benmosche, American International Group’s (AIG)
president and CEO since August, faces what many would regard as an
unenviable challenge. But at least it is a challenge for which he
is being well – though seemingly not excessively – rewarded.
According to a disclosure by AIG, Benmosche
will receive an annual remuneration of $3 million in cash plus $4
million in AIG ordinary shares which will be awarded in biweekly
allotments. The shares vest immediately upon award but are
restricted from sale for five years from Benmosche’s 10 August 2009
While he is being well rewarded, his package
is not excessive, according to data from corporate governance
research firm The Corporate Library. The firm found CEOs at S&P
500 Index companies received on average $10.9 million in total
compensation in 2008.
Benmosche is, however, faring far better than
his immediate predecessor Edward Liddy who accepted a token cash
salary of $1 in 2008. His additional benefits totalled
According to US labour union organisation the
AFL-CIO, the highest paid CEO in the US financial services industry
in 2008 was specialty insurer and reinsurer Axis Capital Holdings’s
John Charman. He pocketed $46.77 million in total compensation,
making him the eighth best-rewarded CEO in the US.
In financial services, Charman was followed by
American Express’ Kenneth Chenault who received $43.4 million,
Goldman Sachs’ Lloyd Blankfein at $42.95 million and Citigroup’s
Vikram Pandit at $38.24 million.
Within the insurance industry, after Charman
came broking giant Marsh & McLennan Companies’ Brian
Duperreault who raked in $24.96 million in total compensation in
2008. He was followed WellCare Health Plans’ Heath Schiesser who
walked off with $23.47 million. WellCare focuses exclusively on
government-sponsored health insurance programmes.
Among the CEOs of life insurers, topping the
list in 58th overall position was MetLife’s C Robert Henrikson who
received a $21.45 million compensation package in 2008. Trailing
him in 69th position was life insurer Prudential Financial’s John R
Strangfeld who took home $21.58 million in total compensation.