A Good Day for AIG Boss

It’s been a good day for Robert Benmosche, and that’s an unusual thing to say for somebody who’s taking on the job of running insurance giant and rolling disaster AIG.

First came news in the Wall Street Journal this morning that Benmosche was likely to get his $10.5 million pay package approved by the Obama administration’s executive pay czar, Kenneth Feinberg, whose official title is special master for compensation for the Department of Treasury. The paper cited inside sources in its report.

AIG had been pushing Feinberg for a quick ruling over Benmosche’s pay, fearing the CEO might walk away if he didn’t get his money.

So that report must have been nice to see in this morning’s paper.

Then came the news that former longtime AIG boss Maurice “Hank” Greenberg, who has practically been at war with the company he helmed for years and built into the world’s largest insurer, was at least approaching a rapprochement with his former company.

In a phone interview, Greenberg told Reuters, "If Bob Benmosche seeks any assistance, whatever he needs me to do, I'll be glad to give him."

Bill Bergman, a senior analyst with Morningstar Inc., told Reuters that Greenberg’s help could be a big asset to Benmosche. He could help the new CEO raise money in the private markets that he needs to pay back the government for its $182.5 billion bailout of AIG.

Bennmosche, for his part, has told AIG employees he wouldn’t be rushed into selling off good assets. He said he wouldn't sell off pieces of the company until AIG could get fair value for them.

Shares of AIG rose $9.29 to $46.98 in afternoon trading. So the market clearly liked what it was hearing.