8-KLeadership ChangesExhibits & Filings

AMERICAN INTERNATIONAL GROUP, INC. 8-K Report, Executive Changes (Mar 27, 2013)

Filed March 27, 2013For Securities:AIG

Summary

This 8-K filing from American International Group, Inc. (AIG), dated March 27, 2013, announces the adoption of new executive compensation and incentive plans by its Compensation and Management Resources Committee. The key developments include the introduction of the 2013 AIG Long-Term Incentive Plan (2013 LTIP) and the 2013 AIG Short-Term Incentive Plan (2013 STIP), both designed to align employee incentives with AIG's long-term and short-term performance, respectively. Furthermore, AIG has implemented an AIG Clawback Policy, effective March 21, 2013. This policy aims to promote sound risk management and individual accountability by allowing the company to recoup compensation under certain circumstances, such as material financial restatements, inaccurate performance metrics, or actions resulting in significant financial or reputational harm to AIG. These initiatives reflect a focus on performance-driven compensation and enhanced corporate governance.

Key Highlights

  • 1Adoption of the 2013 AIG Long-Term Incentive Plan (2013 LTIP) to incentivize long-term company performance.
  • 2Establishment of the 2013 AIG Short-Term Incentive Plan (2013 STIP) to drive annual performance through cash incentives.
  • 3Introduction of the AIG Clawback Policy, effective March 21, 2013, to promote risk management and accountability.
  • 4The Clawback Policy allows for forfeiture and repayment of compensation under specific triggering events, including financial restatements and risk management failures.
  • 5Both LTIP and STIP awards are performance-based, with potential payouts ranging from 0% to 150% of target awards.
  • 6The 2013 LTIP involves performance share units earned over a three-year period and settled in AIG common stock.
  • 7A portion of the 2013 STIP awards for senior employees (grade level 27 and above) will be deferred.

Frequently Asked Questions

AIG has adopted the 2013 AIG Long-Term Incentive Plan (2013 LTIP) and the 2013 AIG Short-Term Incentive Plan (2013 STIP). The LTIP focuses on rewarding long-term performance through performance share units, while the STIP provides annual cash bonuses tied to enterprise, business unit, and individual performance.

The AIG Clawback Policy is designed to encourage sound risk management and individual accountability among executive officers and other covered employees. It allows AIG to recoup compensation if certain 'triggering events' occur, such as material financial restatements, inaccurate performance reporting, or failures in risk management that harm the company.

Both the 2013 LTIP and 2013 STIP tie awards to performance metrics established by the Compensation and Management Resources Committee. Participants can earn between 0% and 150% of their target award based on their achievement against these metrics and, for the STIP, AIG's company-wide performance rating.

Yes, for the 2013 STIP, 50% of any earned award for participants in grade level 27 and above will be deferred until March 1 of the following year. Awards under the 2013 LTIP, once earned, vest in three equal annual installments.