10-K/APeriod: FY2009

AMERICAN INTERNATIONAL GROUP, INC. Annual Report (Amendment), Year Ended Dec 31, 2009

Filed August 24, 2010For Securities:AIG

Summary

This filing, an amendment to AIG's 2009 Form 10-K, focuses exclusively on providing expanded details regarding the incentive compensation awards for named executive officers in 2009. The key takeaway for investors is that these awards were tied to specific, objective performance metrics crucial for AIG's stabilization and restructuring efforts, as overseen by a Special Master. The metrics covered areas such as risk management, capital preservation, debt repayment, talent retention, and the performance of key business segments like Chartis and ALICO. Overall, the amendment indicates that the executive team's incentive compensation was largely awarded at the target level, reflecting substantial achievement or exceeding performance targets. This disclosure provides transparency into how executive pay was determined during a critical period for AIG, linking compensation directly to the company's financial health and strategic objectives.

Key Highlights

  • 1Incentive compensation for named executives was based on objective performance metrics mandated and reviewed by a Special Master.
  • 2Performance metrics were designed to drive AIG's stabilization, restructuring, risk management, and capital preservation.
  • 3Key business segments, including Chartis and ALICO, had specific performance metrics tied to their respective operations.
  • 4Executive compensation decisions were made by the Committee and formally adopted by the Special Master.
  • 5The filing confirms that named executives substantially achieved or exceeded their target performance levels, leading to incentive compensation awards at the target level.
  • 6Specific achievements related to debt repayment, such as the closing of AIA and ALICO SPV transactions, were key performance indicators.

Frequently Asked Questions

This amendment's sole purpose is to provide additional, detailed information about how incentive compensation awards were determined for AIG's named executive officers in 2009, based on specific performance metrics.

The determination of executive incentive compensation was overseen by a Special Master, who required that awards be based on objective performance metrics developed in consultation with them. For the CEO, Robert Benmosche, the Special Master also had to formally review and approve the actual award amount.

The performance metrics varied by executive role but generally focused on critical objectives for AIG's stabilization and restructuring. These included risk management, capital preservation, debt repayment, talent retention, cost control, and the specific performance of key business units like Chartis and ALICO.

Based on the reviews conducted, the Committee determined that each of the named executives had substantially achieved or exceeded their target performance levels. Consequently, the Committee decided to award incentive compensation to these executives at the target level.