Duperreault to step down as AIG exec chair before contract ends in 2022
American International Group (AIG) has revealed that Brian Duperreault will stand down as executive chairman at the end of 2021 and become a non-officer employee of AIG providing assistance and advice to Peter Zaffino, who is set to take over the role of chief executive officer (CEO) at the start of March.
As part of the leadership transitions, Zaffino will take up the top position at AIG, in addition to his role as president of the company. He will be provided with an annual target direct compensation of $17 million, comprising an annual base salary of $1.5 million, a target 2021 short-term incentive opportunity of $4 million and a target 2021 long-term incentive opportunity of $11.5 million. AIG will also provide Zaffino with other benefits and expenses, including the use of its aircraft, pool cars and drivers, and an annual cash perquisite allowance.
Duperreault will serve as executive chairman starting March 1, 2021 through the close of business on December 31, 2021. His employment with AIG will end at the close of business on December 31, 2022.
During his period as exec chair, he will continue to be entitled to benefits consistent with senior executives of AIG and reimbursement of reasonable business expenses, including access to offices in New York and Bermuda, AIG aircraft usage plus a personal travel allowance, use of AIG pool cars and drivers, and a cash perquisite allowance for 2021.
Duperreault's agreement provides for a 2021 annual target direct compensation of $12.75 million, comprising an annual base salary of $1 million, a target 2021 short-term incentive opportunity of $0.75 million, and a target 2021 long-term incentive opportunity of $11 million in the form of 50 percent restricted stock units and 50 percent stock options.
The agreement with Duperreault also provides for 2022 annual target direct compensation for service as a non-officer employee of $7.5 million, comprising an annual base salary of $0.5 million and a target 2022 long-term incentive opportunity of $7 million in the form of 50 percent in restricted stock units and 50 percent in stock options.
Beginning in 2022, Duperreault will no longer be eligible for an annual short-term incentive opportunity, and will no longer participate in AIG’s Executive Severance Plan.
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