AIG rewards performance with enhanced cash bonuses
Four of American International Group (AIG)’s senior executives, including its CEO, Robert Benmosche, have been awarded cash bonuses after they exceeded their targets last year.
The previously troubled insurer achieved $8.7 billion in cash distributions from subsidiaries, paid $294 million in cash dividends to shareholders and decreased its outstanding debt by $6.8 billion in 2013.
Based on this performance, Benmosche received a $6 million cash incentive, while Peter Hancock, AIG’s property-casualty business head, and Jay Wintrob, CEO of the life unit, also received enhanced bonuses of $3.5 million and $3.8 billion respectively.
According to the company’s regulatory filing, the company approved a “2013 short-term cash incentive representing 150 percent of Mr. Benmosche’s target opportunity”. The statement said Benmosche’s incentive was based on a business unit modifier of 110 percent, which considered the average performance of AIG’s three core business units (AIG Property Casualty, AIG Life and Retirement and UGC) which all exceeded their targets in terms of performance last year.
Following the insurer’s bailout by the US government, AIG linked compensation to performance, “aligning the economic interests of executives with the long-term interests of AIG and its shareholders”.
