Incoming American International Group Inc. President and Chief Executive Robert Benmosche will get an annual salary of $7 million plus long-term incentive awards of as much as $3.5 million a year.

The package, announced on Monday, has received "approval in principle" from Kenneth Feinberg, the Treasury Department's special master for executive compensation for institutions that received bailouts. Mr. Benmosche was appointed to the position a week ago.

Citing...