AIG CEO to Receive $5 Million for Transition Service
March 17 2017 - 7:45PM
Dow Jones News
By Maria Armental
American International Group Inc. Chief Executive Peter Hancock,
who agreed to resign this month under pressure from billionaire
investor Carl Icahn, will be paid $5 million on top of his regular
pay to stay on until a successor is appointed, part of an exit
package for being let go "without cause."
Mr. Hancock is slated to receive $9.5 million in severance. He
won't get a short-term incentive award for 2016.
Under the terms of the agreement with AIG, Mr. Hancock
technically is working on an at-will basis, meaning he could leave
at any time, but if he were to do so, he's lose the $5 million cash
payment along with 2017 long-term incentive pay.
The arrangement was disclosed Friday in a filing with securities
regulators.
The 58-year-old Mr. Hancock agreed to resign after meeting with
several directors in his office in downtown Manhattan, The Wall
Street Journal reported citing people familiar with the matter.
Some directors, The Journal reported, feared a potential fight with
Mr. Icahn.
Mr. Icahn, one of the big corporate raiders of the 1980s,
disclosed a stake in AIG in 2015 and had pushed for the insurer to
break itself up and tried to oust Mr. Hancock. Mr. Icahn and fellow
investor John Paulson eventually brokered a deal with AIG in
exchange for board representation.
The latest shake-up follows the insurer's worst quarterly
results since the financial crisis, though Mr. Hancock appeared to
be making headway in improving the company's results.
Shares closed down Friday at $62.42, down 4% for the year but up
17% over the past 12 months.
Write to Maria Armental at maria.armental@wsj.com
(END) Dow Jones Newswires
March 17, 2017 19:30 ET (23:30 GMT)
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