8-KLeadership Changes

AMERICAN INTERNATIONAL GROUP, INC. 8-K Report, Executive Changes (Apr 12, 2010)

Filed April 12, 2010For Securities:AIG

Summary

This 8-K filing from American International Group, Inc. (AIG) on April 12, 2010, primarily details a decision by the Board of Directors regarding compensation for its former Chairman and CEO, Edward M. Liddy. Specifically, the company determined to provide Mr. Liddy with an annual stipend of $120,000 for 2009. This amount reflects the increased cost of living and inconvenience he experienced by serving in New York while his family remained in Chicago. The filing also clarifies that since Mr. Liddy retired in August 2009, he was eligible for $80,000 of this stipend. Notably, AIG confirmed that this payment was permissible under the Troubled Asset Relief Program (TARP) Standards for Compensation and Corporate Governance, following approval from the Special Master for TARP Executive Compensation. This disclosure provides transparency on executive compensation decisions made during a period of significant government oversight.

Key Highlights

  • 1AIG's Board of Directors approved an annual stipend for former Chairman and CEO Edward M. Liddy for his 2009 service.
  • 2The stipend amount determined was $120,000.
  • 3The stipend is intended to compensate Mr. Liddy for the higher cost of living and inconvenience associated with working in New York while residing in Chicago.
  • 4Mr. Liddy retired from AIG in August 2009.
  • 5Due to his retirement, Mr. Liddy was eligible for $80,000 of the total stipend.
  • 6Payment of this stipend was permitted under TARP Standards for Compensation and Corporate Governance.
  • 7The proposal for the stipend was submitted to and satisfied the Special Master for TARP Executive Compensation.

Frequently Asked Questions

The main purpose of this 8-K filing is to disclose AIG's decision to provide a stipend to its former Chairman and CEO, Edward M. Liddy, for his service in 2009, and to confirm that this payment complied with TARP compensation standards.

The stipend was awarded to compensate Mr. Liddy for the increased cost of living and inconvenience he incurred by having to work in New York while his family remained in Chicago during his service as Chairman and CEO.

No, Mr. Liddy retired in August 2009, and therefore was only eligible for $80,000 of the $120,000 stipend.

Yes, the payment was permitted under the TARP Standards for Compensation and Corporate Governance, and AIG had to satisfy the Special Master for TARP Executive Compensation with the proposal for this stipend.