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

Director James J. Dunne III received deferred stock units (DSUs) as part of his annual compensation for service as a non-employee director, according to a Form 4 filing.

Summary

• James J. Dunne III, a director at American International Group, Inc. (AIG), was awarded 402 deferred stock units (DSUs) on April 1, 2024, as part of his annual compensation for serving as a non-employee director.
• These DSUs were granted under the AIG 2021 Omnibus Incentive Plan and 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 board service ends, unless he elects to defer the vesting date.
• The filing also reports an additional 6 DSUs representing dividend equivalent rights related to previously awarded DSUs.
• Following the reported transactions, Dunne beneficially owns 1,697 DSUs.
• Dunne has granted power of attorney to Rose Marie Glazer, Christina Banthin, and Linda Kalayjian to execute and file SEC forms on his behalf.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive as it reflects a routine director compensation disclosure. The award of DSUs is generally viewed as a positive sign of aligning director interests with shareholders.

Positives

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

Future Outlook

The DSUs will be settled in shares of AIG common stock upon the end of Dunne's board service, unless he elects to defer the vesting date.

Industry Context

Director compensation packages often include stock-based awards like DSUs to align their interests with shareholders and incentivize long-term value creation. This filing is a routine disclosure of such an award.

Comparison to Industry Standards

• Director compensation packages vary across the financial services industry, but stock-based awards are a common component.
• Companies like JPMorgan Chase, Goldman Sachs, and Citigroup also utilize stock options, restricted stock, and deferred stock units in their director compensation plans.
• The specific number of DSUs awarded depends on factors such as company size, performance, and director responsibilities.

Stakeholder Impact

• The award of DSUs aligns the director's interests with those of the shareholders, potentially incentivizing decisions that increase shareholder value.

Key Dates