Several senior executives at American International Group Inc. — including President and CEO Robert Benmosche — received handsome bonuses for 2013 for exceeding business targets, according to a filing AIG submitted to the U.S. Securities and Exchange Commission.
Mr. Benmosche was granted a $6 million bonus to complement his $2 million base salary, according to the Thursday filing.
“In March 2014, the (Compensation) Committee approved, and the Board ratified, a 2013 short-term cash incentive award of $6 million … earned awards are based on both business unit and individual performance,” said AIG in its filing.
“For Mr. Benmosche, the Committee applied a business unit modifier of 110%, based on the weighted average of the performance modifiers for AIG's three core business units … each of which achieved above target performance in 2013. The Committee then applied an individual performance modifier of 136% based on Mr. Benmosche's key AIG-wide financial, strategic, operational and organizational achievements … Payment of 50% of Mr. Benmosche's earned award is deferred until March 2015,” read the filing.
According to the filing, Jay Wintrob, executive vice president of life and retirement, was given a $3.8 million bonus on top of a $1.2 million base salary; Peter Hancock, executive vice president of property/casualty insurance, earned a $3.5 million bonus and a $1.35 million base salary; William Dooley, executive vice president of investments, got a $2.4 million bonus in addition to his $ 1 million salary; and David Herzog, chief financial officer, got a $2.26 million bonus to top his $1 million salary.
“AIG remains committed to continually evaluating and enhancing our risk management control environment, risk management processes and enterprise risk management functions, including through enhancements to its risk governance framework,” the company said in its filing.
“AIG's compensation practices are integral parts of the company's approach to risk management, and the Committee regularly monitors AIG's compensation programs to ensure they align with sound risk management principles. Since 2009, the Committee has followed a practice of meeting periodically to discuss and review, in consultation with the Chief Risk Officer, the relationship between AIG's risk management policies and practices and the incentive compensation arrangements applicable to senior executives.”
AIG executive compensation had been limited for several years after the federal government provided it with more than $180 billion in financial assistance in 2008 to stave off potential collapse of the company. The restrictions were lifted after the company paid back the government in 2012.