Summary
This 8-K filing from American International Group (AIG) on November 18, 2008, details the termination of 14 legacy elective deferred compensation plans, effective no later than April 1, 2009. These plans allowed participants, including AIG's current executive officers, to defer earned compensation. While no new deferrals will be accepted after December 31, 2008, existing account balances will remain invested and continue to accrue earnings until distribution. The key takeaway for investors is that all accumulated deferred balances across these 14 plans will be paid out in cash to participants during the first quarter of 2009. The filing provides specific aggregate account balances for current executive officers as of November 12, 2008, totaling $3,009,011. The overall aggregate balance for all participants in AIG's Senior Partners Plan, which includes these executives, was $5,959,001.
Key Highlights
- 1AIG is terminating 14 legacy elective deferred compensation plans.
- 2The termination is effective no later than April 1, 2009.
- 3No new deferrals will be permitted after December 31, 2008.
- 4Participants' account balances will continue to be invested and accrue earnings until payout.
- 5All deferred account balances will be paid out in cash to participants in Q1 2009.
- 6Aggregate account balances for current executive officers totaled $3,009,011 as of November 12, 2008.
- 7The total aggregate account balance across all participants in the Senior Partners Plan was $5,959,001 as of November 12, 2008.