8-KLeadership ChangesExhibits & Filings

AMERICAN INTERNATIONAL GROUP, INC. 8-K Report, Executive Changes (Dec 31, 2009)

Filed December 31, 2009For Securities:AIG

Summary

This Form 8-K filing by AMERICAN INTERNATIONAL GROUP, INC. (AIG) on December 31, 2009, primarily concerns the final determination regarding executive compensation under the Troubled Asset Relief Program (TARP). The key takeaway for investors is the resolution and implementation of compensation decisions for AIG's most highly compensated employees, specifically impacting named executive officers David L. Herzog and Kristian P. Moor. The filing confirms that AIG will issue stock salary grants for 2009 in the form of AIG common stock units, which will be cash-settled on a future transferability date as stipulated by prior agreements. This provides clarity on a significant compensation component that had been subject to the Special Master's review, offering a degree of finality to this aspect of the company's executive remuneration.

Key Highlights

  • 1AIG received a final determination on executive compensation from the Office of the Special Master for TARP Executive Compensation on December 21, 2009.
  • 2The determination impacts compensation for AIG's most highly compensated employees, including named executive officers David L. Herzog and Kristian P. Moor.
  • 3AIG will issue 2009 stock salary grants in the form of AIG common stock units.
  • 4These stock salary grants will be cash-settled on a future transferability date as previously required.
  • 5The company requested and received permission to pay stock salary in either AIG common stock or a 'basket' of subsidiary stock units.
  • 6AIG ultimately decided to use AIG common stock units for its 2009 stock salary awards.
  • 7Forms of award agreements for stock salary and long-term incentive awards under the TARP program are attached as exhibits.

Frequently Asked Questions

This 8-K filing provides an update on the final determination by the Office of the Special Master for TARP Executive Compensation regarding AIG's executive compensation for certain highly compensated employees. It clarifies how 2009 stock salary awards will be issued.

The determination specifically affects AIG's most highly compensated employees, including two named executive officers, David L. Herzog and Kristian P. Moor. Forms of award agreements also apply to AIG's senior executive officers and the next 20 most highly compensated employees.

AIG has determined to use stock units reflecting the value of AIG's common stock for the 2009 stock salary grants. These units will be cash-settled on the required transferability date.

No, this filing is specifically focused on executive compensation under the TARP program and does not provide information on AIG's broader financial performance, operational strategies, or other business segments. It addresses a specific aspect of executive remuneration that was subject to regulatory review.