One highly paid employee of the American International Group Inc. won't be leaving the company as planned before yearend, prompting the Treasury Department to revise a recent decision on pay limitations at the company.

In a letter to AIG dated Monday, Treasury pay czar Kenneth Feinberg said he will allow AIG to pay the employee — among the company's 25 highest compensated — about $4.3 million in incentive payments.

That's on top of an annual $450,000 salary.

The incentive payments would be in two parts: one an annual long-term restricted stock grant of $1 million and another stock payment valued at $3.3 million on the grant date, according to the Treasury's letter.

In a separate letter to Citigroup, the Treasury modified its pay ruling to allow Citigroup to pay expatriate compensation to five instead of four employees, as had been written.

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