But more staff are paid more than $500,000 than last year

US pay csar Kenneth Feinberg cut the number of AIG bosses allowed more than $500,000 in cash from ten to five, including CEO Robert Benmosche, who will get $7.5m of his $10.5m salary in stocks, the Times reports

Feinberg said that 85% of those whose salary he last reviewed in October were still in the same job. He denied his rulings were leading to a brain drain.

Dow Jones said Feinberg cut overall cash compensation for 2010 by 63% from last year for AIG’s top earners, including six at the financial-products unit whose problems helped to nearly sink the firm.

Pay rises for some

A handful of AIG executives did get increases in cash salary, Dow Jones said. Of the eight identified employees who were part of both the 2009 and 2010 reviews, four received cash salary increases of at least $100,000, while the other four remained flat.

For the eight, overall compensation including cash, "stock salary" and long-term restricted stock either stayed the same or rose.

In addition, the number of people at AIG reviewed by Feinberg who earned a cash salary of more than $500,000 went from one person in 2009 (Chief Executive Robert Benmosche) to five people in 2010.

Three of those people are making $700,000 a year and one is making $1.5m. Benmosche earns $3m in cash salary per year, Dow Jones said.

Pay cuts

The bulk of the new entrants - or 12 out of 14 - to this group of highest earners saw their overall cash compensation decrease by $23m, according to documents Feinberg's office released Tuesday.

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