AIG is one of four companies (Citigroup, General Motors and GMAC are the others) that received the compensation determination today.

For AIG, Mr. Feinberg issued compensation rules on the 26 to 100 most highly compensated employees. He issued rules for the top 25 compensated employees last month.

Under the rules cash salaries will be limited to $500,000 and all cash payments, including bonuses, are limited to 45 percent of the total salary. There are no cash guarantees.

The rest of the compensation comes in the form of stock tied to company performance. Fifty percent of that compensation must be held for three years or more and the remainder in long term stock.

There are clawback provisions if the bases of the incentive awards prove "illusory."

According to the rules, published on the U.S. Treasury Department's Web site, the incentive compensation for these employees "cannot exceed a specified percentage of AIG's eligible earnings, which will be determined by AIG's Compensation Committee and may be reviewed by the Special Master."

"The total compensation payable to AIG employees is weighted heavily toward long-term structures that are tied to AIG's performance and are easily understood by shareholders," Mr. Feinberg said in a letter to Robert Benmosche, president and chief executive officer of AIG. "As a general principle, guaranteed income is rejected."

The covered employees are also "prohibited from engaging in any hedging, derivative or other transactions" that could "undermine the long-term performance incentives created by the compensation structures."

Mr. Feinberg rejected an AIG compensation proposal that included guaranteed cash payments.

A spokesman for AIG said the company declined comment.