(Adds details on compensation, Paulson's departure)
By Suzanne Barlyn
April 13 American International Group Inc's
board of directors declined to award Chief Executive
Officer Peter Hancock a cash bonus for his work last year, after
the company's dismal financial performance roiled shareholders,
according to a proxy filing on Thursday.
Hancock, however, will still receive a total of nearly $9.6
million in 2016 compensation, according to the filing. The
figure includes his $1.6 million base salary, longer-term
incentive pay in stock worth $7.8 million and additional funds.
The stock incentive starts to pay out in 2019.
His total compensation for 2016 fell 23 percent from 2015,
the filings show.
The insurance company's board also re-nominated Samuel
Merksamer, who represents billionaire Carl Icahn, to serve on
the board for another term. Merksamer, who last year left the
activist investor's firm, Icahn Capital, a unit of Icahn
Enterprises LP, will continue as Icahn's representative,
according to the proxy filing.
AIG's board also disclosed in the filing that hedge fund
manager John Paulson is leaving the board because of "other time
commitments." Paulson owned 4.55 million AIG shares as of March
15, according to the filing.
The proxy filing comes at a tumultuous time for the U.S.
insurance company. AIG announced last month that Hancock, 58,
would step down, after a poor fourth quarter frustrated
shareholders and the insurer's board of directors.
Hancock will stay on as chief executive until the board finds a
successor, the company has said.
Icahn, AIG's fourth-largest investor, began acquiring his
stake in the insurance firm in 2015. He advocated splitting AIG
into three parts. The company instead embarked on a two-year
turnaround plan developed by Hancock, which intended to return
$25 billion to shareholders.
Last year, AIG returned a total of $13.1 billion of capital
to shareholders, the company said.
While Hancock must forego a 2016 cash bonus, other AIG
executives will receive bonuses of $680,000 or more,
representing 40 percent of possible target amounts, according to
(Reporting by Suzanne Barlyn; editing by Lisa Shumaker and Dan