Form 4: AIG Director Peter R. Porrino Awarded Deferred Stock Units

Director Peter R. Porrino received deferred stock units (DSUs) as part of his compensation for serving as a non-employee director of American International Group, Inc. (AIG).

Summary

• Peter R. Porrino, a director of American International Group, Inc. (AIG), was awarded deferred stock units (DSUs) on April 1, 2024.
• These DSUs were granted under the AIG 2021 Omnibus Incentive Plan as part of his annual compensation for serving as a non-employee director.
• He received 660 DSUs and an additional 180 DSUs representing dividend equivalent rights.
• The 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, Porrino beneficially owns 39,929 DSUs.

Sentiment

Score: 7

Explanation: The document reflects a routine compensation practice. The sentiment is neutral to slightly positive as it aligns director interests with shareholders.

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 upon the director's departure from the board, unless the director elects to defer the vesting date.

Industry Context

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

Comparison to Industry Standards

• Equity compensation for board members is a common practice across the financial services industry.
• Companies like JP Morgan Chase, Goldman Sachs, and Citigroup also utilize stock options, restricted stock, and deferred stock units as part of their director compensation packages.
• The specific amount and terms of the equity awards vary based on company size, performance, and board responsibilities.

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 impact on employees, customers, suppliers, and creditors is likely to be minimal.

Key Dates