Reacting to “speculative media stories” about his possible departure from American International Group, CEO Robert H. Benmosche reassured the employees he is “totally committed” to the troubled insurer.

Robert H. Benmosche

On Nov. 10, the Wall Street Journal reported that Benmosche, named AIG’s chief executive in August, told the company’s board of directors he was “done,” citing frustrations with the government over executive compensation issues.

Kenneth Feinberg, the Obama Administration’s “pay czar” overseeing companies receiving billions in taxpayer-funded bailouts, recently met with AIG executives over the issue, according to the newspaper.  That meeting did not go well, the Journal said, prompting Benmosche’s statement to the board.

However, in a letter to AIG employees issued Nov. 11 and obtained by IFAwebnews.com, Benmosche said he is “indeed frustrated” over ensuring that the insurer’s top 100 executives receive fair compensation. He added that there are ongoing discussions with Feinberg and the U.S. Treasury “to resolve the uncertainty surrounding this issue,” adding that “the vast majority of AIG employees are unaffected by this issue.

“Let me be clear: I and the Board remain totally committed to leading AIG through its challenges and to continuing to fight on your behalf,” Benmosche wrote in his letter. “We are all working aggressively to overcome this compensation barrier that stands in the way of restoring AIG’s value and allowing us to live up to our obligations to all stakeholders: our customers, who have remained loyal; our nearly 100,000 employees, including 46,000 here in the U.S.; our shareholders and creditors. “

Benmosche praised staff for their “great job under difficult circumstances,” sympathizing with those who “have suffered terrible losses” as a result of the company’s financial issues.

“But you have persevered and we’re now seeing progress,” he said. “Our results for the last two quarters have demonstrated greater stability and our businesses are recovering.”

AIG recently announced their second straight positive quarter, with a reported profit of $455 million.

The CEO asked employees not to “be distracted by speculative media stories” and “maintain your focus on the important work you are doing.

“People – you – make AIG strong and successful,” Benmosche said. “I am impressed every day at all that you are accomplishing and I thank you all. I’m proud to have this opportunity to work with you to restore our company.”