Helping return one of the nation’s largest insurers to prominence while repaying billions in taxpayer dollars will net new American International Group CEO Robert Benmosche an annual salary of $7 million.

Robert H. Benmosche

Benmosche, who assumed his new job Aug. 10, will receive $3 million in cash and $4 million in stocks, and is also eligible for a performance bonus of up to $3.5 million, according to an Aug. 17 filing with the U.S. Securities and Exchange Commission. For 2009, the performance bonus will be prorated, according to the filing.

The new compensation agreement also states that Benmosche will not participate in AIG’s Executive Severance Plan nor is he entitled to any severance if his employment is terminated for any reason.

Benmosche’s compensation is subject to formal review and approval by Kenneth Feinberg, President Barack Obama’s “executive compensation czar” for the U.S. Treasury Department, which has bailed out AIG to the tune of more than $180 billion to date. Published reports indicate that Feinberg has approved the salary in principle.

Former AIG chairman and CEO Edward M. Liddy retired from the post Aug. 10, and the insurer’s board of directors named Benmosche to assume the role of CEO and former American Express Co. chairman and CEO Harvey Golub as their chairman.