AIG's Benmosche threatened to leave over pay constraints: report

11/11/2009 - 10:49

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(Reuters) - Unhappy over constraints imposed by U.S. government overseers, American International Group Inc Chief Executive Robert Benmosche told the company's board last week that he is considering stepping down, the Wall Street Journal said, citing people familiar with the matter.

The giant insurer's chief executive is particularly unhappy over a recent compensation review by Kenneth Feinberg, the Treasury bailout program's special master for compensation, the paper said, citing the people.

Benmosche told AIG directors that he was "done" but agreed to think it over when they reacted with shock, the people told the paper.

AIG could not be immediately reached for comment by Reuters outside regular U.S. business hours.

AIG, which has received up to $180 billion of federal aid, including more than $80 billion in loans, and is now 80 percent-owned by U.S. taxpayers, posted its second straight quarterly profit last week, helped by a recovery in the value of its investments.

(Reporting by Ajay Kamalakaran in Bangalore; Editing by Valerie Lee)

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