Business Context and Reporting Period
This Form 8-K Current Report was filed by American International Group, Inc. (AIG) on April 7, 2010. The filing addresses a specific corporate governance matter regarding compensatory arrangements for a former executive.
Key Financial Metrics
The filing does not provide comprehensive financial statements, revenue, profit, cash flow, margins, debt, or liquidity metrics. The only financial figure disclosed is a specific compensation stipend of $120,000 approved for the 2009 calendar year.
Material Changes
The material change reported is the Board of Directors' determination to provide former Chairman and CEO Edward M. Liddy with an annual stipend of $120,000 for 2009. This amount covers the higher cost of living and inconvenience incurred due to his service in New York while residing in Chicago. Previously, Mr. Liddy was eligible for only $80,000 following his retirement in August 2009.
Guidance, Outlook, and Risks
The filing notes that the payment was permitted under the TARP Standards for Compensation and Corporate Governance. The proposal was submitted to and satisfied the Special Master for TARP Executive Compensation. No forward-looking guidance, general outlook, or new risk factors are disclosed in this specific report.
Investor Verification Checklist
- Verify the total compensation paid to Edward M. Liddy for 2009, including the $120,000 stipend.
- Confirm the approval status of the stipend by the Special Master for TARP Executive Compensation.
- Review the TARP Standards for Compensation and Corporate Governance to understand the eligibility criteria for such payments.