Form 4: AIG Director Diana M. Murphy Receives Dividend Equivalent Rights in Deferred Stock Units

Director Diana M. Murphy acquired dividend equivalent rights in the form of 20 deferred stock units (DSUs) related to previously awarded DSUs under AIG's 2021 Omnibus Incentive Plan.

Summary

• Diana M. Murphy, a director at American International Group, Inc. (AIG), received 20 deferred stock units (DSUs) on April 1, 2024, representing dividend equivalent rights.
• These DSUs are related to previously awarded DSUs under the company's 2021 Omnibus Incentive Plan.
• The DSUs, along with the underlying previously awarded DSUs, will be settled in shares of AIG common stock on a 1-to-1 basis on the last trading day of the month in which the director's service on the Board ends, unless the director has elected to defer the vesting date.
• Following this transaction, Ms. Murphy beneficially owns 4,175 DSUs.

Sentiment

Score: 7

Explanation: The document is a routine regulatory filing indicating standard compensation practices. It doesn't contain any information that would significantly impact investor sentiment positively or negatively.

Future Outlook

The DSUs will be settled in shares of AIG common stock on a 1-to-1 basis on the last trading day of the month in which the director's service on the Board of Directors ends, unless the director has elected to defer the vesting date.

Industry Context

This filing is a routine disclosure related to director compensation and holdings, which is common practice for publicly traded companies. It provides transparency into the alignment of director interests with shareholder value through equity-based compensation.

Comparison to Industry Standards

• Director compensation packages often include deferred stock units (DSUs) to align their interests with long-term shareholder value, similar to practices at companies like Goldman Sachs, JP Morgan Chase, and Citigroup.
• The vesting and settlement terms of these DSUs are typical, with settlement occurring upon the director's departure from the board, unless deferred, which is a standard feature in many executive compensation plans.
• The 1-to-1 conversion ratio of DSUs to common stock is a common industry practice.

Stakeholder Impact

• The transaction has a minor positive impact on shareholders by aligning the director's interests with the company's long-term performance.

Key Dates