Form 4: AIG Director James Cole Jr. Acquires Additional Deferred Stock Units

Director James Cole Jr. acquired 77 deferred stock units (DSUs) of American International Group (AIG) on December 31, 2024, as part of his compensation.

Summary

• James Cole Jr., a director at American International Group (AIG), acquired 77 deferred stock units (DSUs) on December 31, 2024.
• These DSUs are dividend equivalent rights related to previously awarded DSUs under AIG's 2013 and 2021 Omnibus Incentive Plans.
• The DSUs will be settled in shares of AIG common stock on a 1-to-1 basis when the director's service on the board ends, unless the vesting date is deferred.
• Mr. Cole now beneficially owns a total of 14,035 DSUs.

Sentiment

Score: 7

Explanation: The document reflects a routine transaction related to director compensation, which is generally viewed neutrally to positively by investors. It indicates alignment of interests between the director and the company.

Positives

• The acquisition of DSUs aligns the director's interests with the company's performance.
• The dividend equivalent rights provide additional value to the director's compensation.

Future Outlook

The DSUs will be settled in shares of AIG common stock upon the end of the director's service on the board, unless the vesting date is deferred.

Industry Context

This is a standard practice for compensating non-employee directors at publicly traded companies, aligning their interests with shareholders through equity-based compensation.

Comparison to Industry Standards

• Many large public companies, such as Berkshire Hathaway, JP Morgan Chase, and Goldman Sachs, use deferred stock units as part of their director compensation packages.
• The vesting and settlement terms of these DSUs are typical, with settlement occurring upon the director's departure from the board, unless deferred.
• The 1-to-1 conversion ratio of DSUs to common stock is also a common practice.

Stakeholder Impact

• The acquisition of DSUs by a director aligns their interests with shareholders, potentially encouraging decisions that benefit the company's long-term performance.

Key Dates

Keywords

Deferred Stock Units, DSU, Director Compensation, AIG, American International Group, James Cole Jr., Stock Options, Incentive Plans