Form 4: AIG Director Juan Perez Receives Additional Deferred Stock Units as Dividend Equivalents

A Form 4 filing indicates that American International Group, Inc. Director Juan R. Perez received 14 additional deferred stock units as dividend equivalent rights, increasing his total beneficial ownership to 2,847 DSUs.

Summary

• Juan R. Perez, a Director at American International Group, Inc. (AIG), reported a change in beneficial ownership.
• On July 1, 2025, Perez acquired 14 Deferred Stock Units (DSUs).
• These DSUs represent dividend equivalent rights related to previously awarded DSUs under AIG's 2021 Omnibus Incentive Plan.
• The DSUs are compensation for his service as a non-employee director.
• Each DSU will settle in one share of AIG common stock upon the director's service ending, unless deferral is elected.
• Following this transaction, Juan R. Perez beneficially owns a total of 2,847 Deferred Stock Units.

Sentiment

Score: 7

Explanation: The filing indicates a routine, positive event where a director receives additional equity-based compensation, aligning their interests with shareholders. It's not a major market-moving event but reflects standard corporate governance and compensation practices.

Positives

• The acquisition of 14 Deferred Stock Units (DSUs) by Director Juan R. Perez indicates continued alignment of director interests with shareholder value through dividend equivalent rights.
• The DSUs are part of the 2021 Omnibus Incentive Plan, suggesting a structured approach to director compensation that ties rewards to company performance (dividends).

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.

Management Comments

• "This award represents dividend equivalent rights in the form of deferred stock units ('DSUs') that are related to the DSUs previously awarded to the reporting person under the American International Group, Inc. ('AIG') 2021 Omnibus Incentive Plan (the '2021 Plan') as compensation for service as a non-employee director."
• "Under such plan and the related award agreements, these 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 of Directors ends, unless the director has elected to defer the vesting date."

Industry Context

This type of insider transaction, specifically the granting of dividend equivalent rights in the form of deferred stock units, is a common practice in the financial services industry for compensating non-employee directors. It aligns their interests with long-term shareholder value by tying a portion of their compensation to the company's stock performance and dividend policy.

Comparison to Industry Standards

• The use of Deferred Stock Units (DSUs) as a component of non-employee director compensation is a standard practice across many large-cap companies, particularly in the financial sector, including peers like MetLife, Prudential Financial, and Chubb.
• Tying director compensation to dividend equivalents, as seen with these DSUs, is a common mechanism to incentivize directors to support policies that generate shareholder returns, similar to practices at companies such as JPMorgan Chase or Bank of America.
• The 1-to-1 settlement ratio of DSUs to common stock is typical for such equity-based compensation plans, ensuring direct alignment with the underlying share value.

Corporate Governance

Stakeholder Impact

• Shareholders: The transaction aligns the director's interests with shareholders by increasing his equity stake through dividend equivalent rights, potentially fostering better long-term decision-making.

Next Steps

• The DSUs will be settled in AIG common stock upon the director's service on the Board of Directors ending, unless a deferral election is made.

Key Dates

Recommendation

Keywords

AIG, American International Group, Juan R. Perez, Form 4, SEC filing, director compensation, deferred stock units, DSU, dividend equivalent rights, insider transaction, beneficial ownership, 2021 Omnibus Incentive Plan