8-KLeadership ChangesExhibits & Filings

AMERICAN INTERNATIONAL GROUP, INC. 8-K Report, Executive Changes (Mar 21, 2014)

Filed March 21, 2014For Securities:AIG

Summary

On March 19, 2014, American International Group, Inc. (AIG) announced the adoption of its Annual Short-Term Incentive Plan (STIP) for the 2014 performance period. This plan is designed to reinforce AIG's commitment to a pay-for-performance culture by linking annual cash incentives directly to business and individual achievements. The STIP covers a broad base of AIG employees and establishes performance metrics that will determine cash award opportunities. The plan allows for awards ranging from 0% to 187.5% of a participant's target award, based on the achievement of pre-defined metrics. Importantly, for senior employees (grade level 27 and above), 50% of any earned award for the 2014 performance period will be deferred for one year, aligning their short-term incentives with longer-term company performance and stability.

Key Highlights

  • 1AIG adopted a new Annual Short-Term Incentive Plan (STIP) effective March 19, 2014.
  • 2The STIP is designed to promote a pay-for-performance compensation philosophy.
  • 3The plan covers a majority of AIG employees for the 2014 performance period (January 1, 2014 - December 31, 2014).
  • 4Cash awards are performance-based, tied to business and individual metrics established by the Compensation Committee.
  • 5Earned awards can range from 0% to 187.5% of the target award.
  • 6For participants at grade level 27 and above, 50% of earned awards for 2014 will be deferred for one year.

Frequently Asked Questions

The primary purpose of the STIP is to strengthen AIG's pay-for-performance culture by providing annual cash incentive opportunities that are directly tied to the achievement of specific business and individual performance metrics.

The STIP covers a majority of AIG employees, with specific provisions for participants at grade level 27 and above regarding award deferral.

Earned awards are determined based on the achievement of one or more performance metrics established by the Compensation and Management Resources Committee. The potential payout ranges from 0% to 187.5% of a participant's target award.

Yes, for participants at grade level 27 and above, 50% of any earned award for the 2014 performance period will be deferred for one year from the award date.