Form 4: AIG Director James J. Dunne III Awarded Deferred Stock Units

Director James J. Dunne III receives deferred stock units (DSUs) as part of annual compensation for service as a non-employee director.

Summary

• James J. Dunne III, a director at American International Group, Inc. (AIG), was awarded deferred stock units (DSUs) on October 1, 2024.
• The DSUs were granted under the 2021 Omnibus Incentive Plan as part of his annual compensation for serving as a non-employee director.
• He received 429 DSUs and an additional 24 DSUs representing dividend equivalent rights.
• These DSUs will be settled in shares of AIG common stock on a 1-to-1 basis when his service on the Board ends, unless he elects to defer the vesting date.
• Following the transaction, Dunne beneficially owns 4,934 DSUs.

Sentiment

Score: 7

Explanation: The document reflects a standard compensation practice, indicating stability and alignment of interests. It's a neutral but positive signal.

Positives

• The award of DSUs aligns the director's interests with those of the shareholders.
• Dividend equivalent rights provide additional value to the director during the vesting period.

Future Outlook

The DSUs will be settled in shares of AIG common stock 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 of director compensation in the form of deferred stock units, a common practice among publicly traded companies to align director interests with shareholder value.

Comparison to Industry Standards

• Director compensation packages often include a mix of cash, stock options, and deferred stock units.
• The specific amount and terms of the DSU award would need to be compared to those of directors at similarly sized financial institutions to assess its competitiveness.
• Companies like JP Morgan Chase, Goldman Sachs, and Citigroup also utilize equity-based compensation for their directors.

Stakeholder Impact

• The award of DSUs aligns the director's interests with those of the shareholders, potentially leading to better corporate governance and decision-making.
• The director benefits from the potential appreciation of AIG's stock price.

Key Dates