Form 4: AIG Director James Cole Jr. Receives Dividend Equivalent Rights in Deferred Stock Units

Director James Cole Jr. of American International Group, Inc. (AIG) acquired dividend equivalent rights in the form of deferred stock units (DSUs) related to previously awarded DSUs.

Summary

• On July 1, 2024, James Cole Jr., a director of American International Group, Inc. (AIG), received dividend equivalent rights in the form of 73 deferred stock units (DSUs).
• These DSUs are related to previously awarded DSUs under AIG's 2013 and 2021 Omnibus Incentive Plans, compensating him for his service as a non-employee director.
• 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 his service on the Board ends, unless he has elected to defer the vesting date.
• Following this transaction, Cole beneficially owns 13,881 DSUs.

Sentiment

Score: 7

Explanation: The document reflects a routine compensation transaction for a board member, indicating standard corporate governance practices. It's a neutral event with a slightly positive sentiment due to the alignment of interests between the director and shareholders.

Positives

• The award of DSUs aligns the director's interests with those of the shareholders.
• The dividend equivalent rights provide additional compensation to the director for their service.

Future Outlook

The DSUs will be settled in shares of AIG common stock upon the director's departure from the board, unless a deferral election is made.

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

• Granting deferred stock units (DSUs) to non-employee directors is a common practice among publicly traded companies, including those in the financial services sector.
• Companies like Goldman Sachs, JP Morgan Chase, and Citigroup also utilize equity-based compensation, such as restricted stock units (RSUs) and stock options, to incentivize and retain their directors.
• The specific amount and terms of these grants vary based on factors such as company size, performance, and industry norms.
• The vesting schedules and settlement terms of DSUs are generally aligned with the director's tenure and service on the board.

Stakeholder Impact

• The award of DSUs aligns the director's interests with those of the shareholders, potentially leading to better decision-making.
• The compensation structure is designed to incentivize the director to contribute to the long-term success of the company.

Key Dates