Form 4: AIG Director Bergamaschi Receives Deferred Stock Units

Paola Bergamaschi, a director at American International Group (AIG), was awarded 2,344 deferred stock units (DSUs) as part of her compensation for service as a non-employee director.

Summary

• Paola Bergamaschi, a director of American International Group, Inc. (AIG), received 2,344 deferred stock units (DSUs) on May 15, 2024.
• These DSUs were granted under the 2021 Omnibus Incentive Plan as compensation for her service as a non-employee director.
• The DSUs will vest and be settled in shares of AIG common stock on a 1-to-1 basis upon the end of her service on the AIG Board, unless she elects to defer the vesting date.
• The award includes dividend equivalent rights that accrue during the vesting period in the form of additional DSUs.
• Following this transaction, Bergamaschi beneficially owns a total of 7,274 DSUs.

Sentiment

Score: 7

Explanation: The document reflects a routine transaction related to director compensation, which is generally viewed neutrally to positively as it aligns director interests with shareholders.

Positives

• The grant of DSUs aligns the director's interests with those of the shareholders.
• The vesting of DSUs is tied to continued service on the board, incentivizing long-term commitment.
• Dividend equivalent rights provide additional value during the vesting period.

Future Outlook

The DSUs will be settled in shares of AIG common stock upon the end of the director's service on the AIG Board, unless the director has elected to defer the vesting date.

Industry Context

Director compensation in the form of stock and deferred stock units is a common practice in publicly traded companies to align the interests of directors with those of shareholders.

Comparison to Industry Standards

• Companies like Chubb, MetLife, and Prudential also use stock-based compensation for their directors.
• The amount of DSUs granted is likely benchmarked against peer companies to ensure competitive compensation for board members.
• The vesting terms are standard, with settlement typically occurring upon departure from the board.

Stakeholder Impact

• Shareholders: The grant of DSUs aligns director interests with shareholder value.
• Employees: The compensation structure for directors can influence overall compensation philosophy within the company.

Key Dates