Business Context and Reporting Period
This Form 8-K was filed by American International Group, Inc. (AIG) on November 12, 2008. The report addresses Item 5.02 regarding the termination of specific executive deferred compensation plans.
Key Financial Metrics
The filing does not provide data on revenue, profit, cash flow, margins, debt, or liquidity. It focuses exclusively on the aggregate account balances of terminated deferred compensation plans as of November 12, 2008:
- Total Senior Partners Plan Balance: $5,959,001 (aggregate for all participants).
- Executive Officer Balances:
- Jay S. Wintrob: $1,897,876
- Win J. Neuger: $607,953
- David L. Herzog: $371,422
- Frank G. Wisner: $100,030
- Robert E. Lewis: $32,171
- William N. Dooley: $21,095
- Jacob A. Frenkel: $8,564
Material Changes
AIG determined to terminate 14 legacy deferred compensation plans, including the AIG Supplemental Incentive Savings Plan and the AIG Executive Deferred Compensation Plan. Key changes include:
- Cessation of Deferrals: No new deferrals will be accepted after December 31, 2008.
- Termination Date: Plans will be terminated no later than April 1, 2009.
- Payment Method: All deferred account balances will be distributed in cash to participants in the first quarter of 2009.
- Investment Status: Existing accounts will remain invested and continue to accrue earnings until distribution.
Guidance, Outlook, and Risks
The filing contains no forward-looking guidance, management commentary on financial outlook, or discussion of general business risks. The primary contingency noted is the mandatory cash payout of all plan balances in Q1 2009, which represents a change in the company's compensation structure for executives.
Investor Verification Checklist
- Verify the total cash outflow required for the Q1 2009 distribution of the $5.96 million in plan balances.
- Confirm the impact of terminating these 14 plans on future executive retention and compensation strategy.
- Review subsequent filings to ensure the cash distributions occurred as scheduled in the first quarter of 2009.