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Labour and the Liberal Democrats abandoned their calls for a full new legal framework but, until last night, were demanding full legal underpinning of the charter.
BBC: How the leaders reached Leveson deal
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The committee's charter says its responsibility include making recommendations to the full board regarding AIG's compensation programs and reviewing and approving any hiring, severance or termination payments.
CNN: Commentary: Boards are real culprits in AIG mess
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While the industry said it needed more time "to study" the proposals before it made a full response, its statement pointed out that early drafts of the royal charter contained "several deeply contentious issues which have not yet been resolved with the industry".
BBC: Press regulation: Reaction to deal