8-KMaterial Agreements

AMERICAN INTERNATIONAL GROUP, INC. 8-K Report, Material Agreement (Jul 21, 2005)

Filed July 21, 2005For Securities:AIG

Summary

This 8-K filing from American International Group (AIG) on July 21, 2005, details the payment of interim bonuses to certain senior executives. These payments are part of AIG's initiative to realign compensation and benefits, specifically to reflect those previously provided by C.V. Starr & Co., Inc. and Starr International Company, Inc. The company is demonstrating a commitment to retaining and motivating its key leadership by adjusting their compensation structures. Investors should note the specific amounts paid and expected to be paid to named executive officers, including the CEO, President, and various Executive Vice Presidents. While these bonuses are presented as 'interim,' they represent a tangible financial commitment to top management, reflecting a strategic move to harmonize compensation and potentially address retention concerns following past arrangements. The filing provides a transparent look into significant compensation adjustments for AIG's leadership team.

Key Highlights

  • 1AIG is paying interim bonuses to certain senior executives as of July 15, 2005.
  • 2These bonuses are intended to reflect compensation and benefits previously offered by C.V. Starr & Co., Inc. and Starr International Company, Inc.
  • 3The filing provides a breakdown of amounts paid to date and amounts expected to be paid in 2005 for each named executive officer.
  • 4Martin J. Sullivan, President and CEO, received $596,250 in interim bonuses to date and is expected to receive an additional $277,500 in 2005.
  • 5Other senior executives, including Executive Vice Chairman Donald P. Kanak and Senior Vice Chairman Thomas R. Tizzio, also received substantial interim bonus payments.
  • 6This action signifies a strategic compensation adjustment aimed at aligning executive rewards with previous benefit structures.

Frequently Asked Questions

AIG is paying these interim bonuses to its senior executives as part of an effort to reflect compensation and benefits that were previously provided by C.V. Starr & Co., Inc. and Starr International Company, Inc. This suggests a strategic adjustment to executive compensation to ensure alignment and potentially address retention or equity concerns.

The filing refers to them as 'interim bonuses,' and also provides 'Amount Expected to be Paid' in 2005. This indicates they are not a one-time event but a component of compensation adjustments for the current year, tied to a specific strategic rationale rather than regular quarterly bonus cycles.

The filing details the amounts paid to date and expected for 2005 for specific executive officers. For instance, Martin J. Sullivan received $596,250 to date and is expected to receive an additional $277,500 in 2005. While the exact total for all executives is not explicitly summed up, the individual figures provide insight into the significant financial commitment to the senior leadership team.

The filing does not explicitly link these interim bonuses to AIG's financial performance. Instead, the stated rationale is to align executive compensation with benefits previously provided by C.V. Starr & Co., Inc. and Starr International Company, Inc., suggesting a compensation restructuring rather than a performance-based payout at this specific time.