8-KMaterial AgreementsExhibits & Filings

AMERICAN INTERNATIONAL GROUP, INC. 8-K Report, Material Agreement (Dec 20, 2005)

Filed December 20, 2005For Securities:AIG

Summary

This Form 8-K filing by AMERICAN INTERNATIONAL GROUP, INC. (AIG) on December 20, 2005, details the establishment of the AIG 2005 Senior Partners Plan. This new compensation plan is designed to incentivize and retain key employees by awarding them units that represent a right to receive $2,200 each, payable promptly after January 1, 2011, provided they remain employed by AIG. The plan also includes provisions for accelerated vesting and payment in cases of death, permanent disability, or retirement after age 65, as well as quarterly cash payments tied to AIG's common stock dividends.

Key Highlights

  • 1AIG established the AIG 2005 Senior Partners Plan on December 14, 2005.
  • 2Key employees are awarded units under the 2005 Plan, with each unit valued at $2,200.
  • 3Payment of the $2,200 per unit is contingent upon continued employment with AIG until after January 1, 2011.
  • 4The plan includes special provisions for accelerated vesting and payment in the event of participant death, permanent disability, or retirement at age 65 or older.
  • 5Participants will also receive quarterly cash payments based on AIG's common stock dividend payments.
  • 6The filing provides a table detailing the units awarded and 2005 year-end bonuses for several senior executive officers, including the CEO, Martin J. Sullivan.
  • 7The AIG 2005 Senior Partners Plan document is filed as an exhibit to this report.

Frequently Asked Questions

The primary purpose of the AIG 2005 Senior Partners Plan is to attract, retain, and motivate key senior employees by providing them with long-term incentives tied to the company's performance and continued employment.

Participants will receive the value of their awarded units ($2,200 per unit) promptly after January 1, 2011, provided they are still employed by AIG at that time. Certain conditions like death, disability, or retirement can accelerate this payment.

Yes, participants will also receive quarterly cash payments. The amount of these payments is determined by a formula related to the cash dividends AIG pays on its common stock.

While this 8-K primarily announces the plan's adoption and details for senior executives, the future payouts under this plan will represent a compensation expense for AIG, which will be reflected in its financial statements in future periods, particularly as the payment dates approach and vesting conditions are met.