AIG’s leaving CEO Hancock denied 2016 bonus, gets $5m for transition period
American International Group’s (AIG) leaving CEO Peter Hancock was denied a bonus for 2016 after the company recorded a $3 billion net loss for the fourth quarter of 2016.
Hancock will, however, receive a cash payment of $5 million through the transition period in addition to its normal compensation in 2017.
Hancock will continue to serve as CEO and director until a successor has been named or, if earlier, December 31, 2017.
On March 9, AIG’s president and CEO said that he would step down because he lost support of shareholders.
The decision came after AIG reported a net loss of $3.04 billion for the fourth quarter, up from a negative $1.84 billion in the same period of 2015, impacted by a $5.6 billion prior year adverse reserve development.
Hancock will not earn a 2016 short-term incentive award, according to an SEC filing. AIG’s board did, however, approve a 2017 grant to Hancock based on his previously disclosed long-term target, 50 percent in the form of performance share units and 50 percent in the form of restricted stock units.
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