According to a regulatory filing by the troubled insurer American International Group Inc. (AIG), its new President and CEO Robert Benmosche will be given an annual salary package of $7 million - $3 million in cash and $4 million in stock - along with long-term incentive awards of $3.5 million a year.

The pay package for the 65-year-old Benmosche - ex-MetLife chief, who was appointed by AIG last week - has received "approval in principle" from Kenneth R. Feinberg, the Treasury department's official-in-charge of watching over compensation for top executives of the seven biggies that received federal bailout.

In comparison to Benmosche's package, his predecessor - Edward Liddy, who stepped down on August 7 - was essentially getting the '$1 annual paycheck', when he took over the role of the AIG chief executive in September, at the request of the Treasury Department. However, J. Sullivan, the last AIG chief executive to complete a full year, had received $14.3 million in 2007.

AIG also mentioned in its regulatory filing that, in its formal offer letter to Benmosche, it has clearly mentioned that his compensation could face "clawbacks" by Feinberg's office, in case bonuses were paid based on financially misleading data. Benmosche has also been told that he will not be receiving any 'severance package' in case of his dismissal from the nearly 80 percent government-owned AIG!