On the heels of reports that he was considering leaving his position at taxpayer-owned insurer AIG (AIG), the company's chief executive, Robert Benmosche, said Wednesday that he remains "committed" to leading the embattled insurer.

In a memo to employees, Benmosche said that he and the company's board of directors "are indeed frustrated" with the pay regulations instituted by White House "pay czar" Kenneth Feinberg "and we are in ongoing discussions ... to resolve the uncertainty surrounding this issue."

The memo comes after The Wall Street Journal reported that Benmosche was considering quitting, three months into taking the reins of the beleaguered insurer.

Benmosche, who became AIG’s CEO in August, reportedly told his board of directors that the pay policies instituted by Feinberg were difficult to comply with, and his frustrations had “hit a crescendo,” the Journal said.

"Let me be clear: I and the Board remain totally committed to leading AIG through its challenges and to continuing to fight on your behalf," Benmosche told employees in the memo. "We are all working aggressively to overcome this compensation barrier that stands in the way of restoring AIG’s value and allowing us to live up to our obligations to all stakeholders."

If Benmosche were to leave AIG, it would be the third CEO the company has had in little over a year, marking yet another disruption for a company that needs to repay taxpayers $90 billion at some point in the future.

Benmosche, formerly the head of MetLife (MET), became CEO of AIG after Edward Liddy also resigned, citing frustrations with running the company.

Benmosche, by several accounts, has been bolder in his dealings with his largest shareholder – the U.S. government – saying he was not willing to sell valuable pieces of the company at distressed prices just to make sure taxpayers would be repaid.

He also took a fairly large annual salary when first hired - $10.5 million – compared to Liddy’s salary of $1.

But Benmosche has also been at the reins of a company that has made some improvements in recent months. The company’s stock is up 189% from the beginning of August and the company reported a profitable quarter last week based on mark-to-market gains in the company’s mortgage portfolio.

"Our results for the last two quarters have demonstrated greater stability and our businesses are recovering," Benmosche said.

Shares of AIG were flat Wednesday, after being down more than 4% earlier in the session, at $37.59 a share.

Benmosche Letter to AIG Employees