NEW YORK (Reuters)—American International Group Inc. "strongly objected" last year when U.S. pay czar Kenneth Feinberg imposed large cuts in the cash salaries of two of its top executives, regulatory filings showed Monday.

Mr. Feinberg slashed the salaries of David Herzog, chief financial officer, and Kristian Moor, executive vp of property/casualty, to $350,000 and $450,000 from $675,000 and $1 million, respectively, effective Nov. 1, 2009.

The two executives, however, received raises for 2010.

AIG CEO Robert Benmosche got cash and stock compensation of $2.7 million in 2009. He was also given a $1.38 million incentive award for 2009. In 2010, he is allowed a maximum compensation of $10.5 million.

Separately, Fairholme Capital Management reported an 11.1% stake in AIG, making it the largest shareholder in the insurer after the U.S. government, which owns nearly 80%, according to Thomson Reuters data.

Fairholme, founded by Bruce Berkowitz, has about $16.5 billion of assets under management. It is also one of the investors who have offered to bankroll U.S. mall owner General Growth Properties Inc.'s exit from bankruptcy.

AIG also disclosed that Mr. Feinberg allowed for exemptions from a $500,000 limit on 2009 salaries of Rodney Martin, executive vp for life insurance, and Nicholas Walsh, executive vp for foreign general insurance.

For 2010, however, Mr. Feinberg brought down the cash salaries of Messrs. Martin's and Walsh's compensation to below $500,000 but increased the stock component of their pay.

Still, the maximum allowed compensation in 2010 was reduced to $5.6 million from $7.26 million for Mr. Martin and to $5.04 million from $6.67 million for Mr. Walsh, the filing showed.

The government-imposed limitations on cash salaries meant cash compensation as a percentage of total pay was significantly lower than its competitors, AIG said in a U.S. Securities and Exchange Commission filing.

AIG, which was bailed out by the government with a $182.3 billion taxpayer funded rescue package, added it was concerned the limit will put it at a competitive disadvantage.

AIG also has recommended increasing the retirement age of directors to 75 from 73.

AIG plans to hold its annual meeting of shareholders on May 12.