8-KLeadership ChangesExhibits & Filings

AMERICAN INTERNATIONAL GROUP, INC. 8-K Report, Executive Changes (Sep 26, 2008)

Filed September 26, 2008For Securities:AIG

Summary

This 8-K filing from AMERICAN INTERNATIONAL GROUP, INC. (AIG) on September 26, 2008, details significant executive compensation and personnel changes during a critical period for the company. The report discloses the implementation of a broad retention program for approximately 130 executives, designed to retain key talent through cash awards payable in installments. Notably, a significant award of $3,000,000 is allocated to named executive officer Jay Wintrob, underscoring AIG's efforts to incentivize leadership during uncertain times. Additionally, the filing announces the retirement of Robert M. Sandler, a long-serving executive. In connection with his retirement, Mr. Sandler is set to receive substantial separation pay and benefits totaling $2,514,168, payable over two years, in accordance with AIG's Executive Severance Plan. The disclosure of these executive arrangements, particularly the retention incentives and substantial severance packages, provides investors with insight into AIG's strategies for managing its executive team amidst potential instability.

Key Highlights

  • 1AIG implemented a retention program effective September 22, 2008, for approximately 130 executives.
  • 2The retention program includes cash awards structured with 60% payable in December 2008 and 40% in December 2009.
  • 3Named executive officer Jay Wintrob is set to receive a $3,000,000 award under the retention program.
  • 4Robert M. Sandler, a 39-year veteran executive, retired from AIG on September 25, 2008.
  • 5Mr. Sandler's retirement package includes $2,514,168 in separation pay and other benefits, payable over two years.
  • 6The severance arrangements for Mr. Sandler are consistent with AIG's Amended and Restated Executive Severance Plan for terminations without cause.

Frequently Asked Questions

The retention program was implemented to retain approximately 130 key executives within AIG. It aims to incentivize leadership to remain with the company through significant cash awards, payable over two installments in late 2008 and late 2009.

Jay Wintrob, a named executive officer, is receiving a retention award of $3,000,000. This award will be paid out in two installments: 60% ($1,800,000) in December 2008 and the remaining 40% ($1,200,000) in December 2009.

Robert M. Sandler retired after 39 years of service. He will receive a total of $2,514,168 in separation pay and other benefits, as per AIG's Executive Severance Plan for terminations without cause. This amount will be paid out over a period of two years.

Yes, AIG's Amended and Restated Executive Severance Plan and the specific Letter Agreement with Robert M. Sandler are attached as exhibits to this Form 8-K filing and are incorporated by reference, making them available for investors to review.