Summary
This 8-K filing by American International Group (AIG) on March 25, 2009, announces the retirement of Edmund S.W. Tse from his roles as Senior Vice Chairman—Life Insurance and from the AIG Board of Directors, effective at the 2009 Annual Shareholder Meeting. Mr. Tse, a long-serving executive with AIG since 1961, is retiring at age 71. While stepping down from his executive and board positions, AIG has engaged Mr. Tse in a one-year service agreement with its Hong Kong-based insurance subsidiary, AIA, to leverage his expertise in Asia during AIG's ongoing restructuring and divestiture efforts. Under this new agreement, Mr. Tse will serve as Honorary Chairman of AIA and Non-Executive Chairman of two other AIG subsidiaries, Nan Shan Life Insurance Company and The Philippine American Life and General Insurance Company. He will receive an annual fee of $250,000 for these services, with the potential for a transaction bonus contingent on the sale or IPO of AIG's foreign life operations. This arrangement highlights AIG's strategy to retain key talent and maintain continuity in its Asian operations during a critical period of corporate change.
Key Highlights
- 1Edmund S.W. Tse, Senior Vice Chairman—Life Insurance, is retiring from AIG and its Board of Directors, effective at the 2009 Annual Meeting.
- 2Mr. Tse, a 48-year veteran of AIG, is retiring at age 71.
- 3AIG has entered into a one-year service agreement with Mr. Tse for his continued advisory role with its Asian insurance operations.
- 4Mr. Tse will serve as Honorary Chairman of AIA and Non-Executive Chairman of Nan Shan Life Insurance and Philippine American Life and General Insurance.
- 5He will receive an annual fee of $250,000 for his services under the new agreement.
- 6Mr. Tse may be eligible for a transaction bonus related to future divestitures or IPOs of AIG's foreign life operations.
- 7This agreement aims to retain Mr. Tse's expertise and relationships in Asia during AIG's restructuring and divestiture program.