Robert Benmosche has told the board of American International Group that he is considering stepping down as chief executive of the government-controlled insurer, just three months after taking the job, the Wall Street Journal reported, citing unnamed sources.

At a board meeting last week, Mr Benmosche told fellow AIG directors that he was "done" but agreed to think it over after other board members reacted with shock, the publication said.

AIG declined to comment when contacted by Family Wealth Report on the matter.

Mr Benmosche is unhappy with controls imposed by AIG's government overseers, particularly a recent compensation review by the US government's pay “czar”, Kenneth Feinberg, the newspaper said. The government now owns 80 per cent of the insurer.

The story highlights how financial institutions receiving taxpayer's money may become embroiled in controversy.

AIG has spun off a number of its business divisions to raise capital after the takeover. For example, it has already sold its Zurich-headquartered private banking business, now owned by Aabar Investments, an Abu Dhabi-based business. Also, losses at some AIG fund products sold in the UK have triggered litigation from clients in the wealth management industry. The firm has also completed the sale of its high net worth insurance business in the US.