American International Group Inc. (AIG) Chief Executive Officer Brian Duperreault seen at AIG headquarters on the day of the company’s 2017 annual shareholder meeting in New York, U.S., June 28, 2017. REUTERS/Suzanne Barlyn
March 27, 2018
By Ross Kerber
BOSTON (Reuters) – American International Group <AIG.N> paid its new chief executive Brian Duperreault $43.1 million last year, a securities filing showed on Tuesday.
AIG, which during the financial crisis faced questions over the compensation of former leader Maurice “Hank” Greenberg, had previously outlined the components of Duperreault’s pay but not the total figure.
Excluding one-time components, Duperreault earned $14.9 million after rejoining AIG in May, according to the company’s annual proxy filing to the U.S. Securities and Exchange Commission.
That figure was similar to the $15.3 million paid to MetLife Inc <MET.N> CEO and Chairman Steven Kandarian in 2016, and less than the $27.1 million paid in 2017 to John Strangfeld, chairman and CEO of Prudential Financial Inc <PRU.N>, according to the latest proxy filings by those companies.
Duperreault, 70, had worked for AIG until 1994 and rejoined it from a Bermuda company he founded, Hamilton Insurance Group.
As CEO he replaced Peter Hancock, who stepped down under pressure. Hancock received $24.2 million last year including a $5 million cash award “for his service through the transition” to the new CEO, according to the filing.
Duperreault’s payout could indicate investor angst at high CEO pay has faded with rising markets. At last year’s AIG annual meeting, about 98 percent of votes cast by investors were in favor of the 2016 compensation for top executives, the company’s filing states.
While Duperreault’s compensation will be up for another advisory vote at its annual meeting on May 9, some investors have previously said they would approve of the pay so long as he performs.
Since his appointment AIG’s shares have closed as high as $66.06 on Aug. 3. The stock closed at $54.21 on Monday.
AIG received a federal bailout during the financial crisis that eventually totaled $182.3 billion but was repaid.
Greenberg, who built the company until his ouster in 2005, on Monday suffered a legal defeat when the U.S. Supreme Court declined to hear an appeal he led arguing the bailout was illegal and at the expense of shareholders.
Duperreault’s compensation in 2017 included a $12 million cash bonus and a one-time option award valued at $16.2 million, mostly tied to performance targets.
AIG’s board compensation committee “believes this award properly motivates Mr. Duperreault to create sustainable, profitable growth for AIG, aligning his interests with those of our shareholders,” the proxy filing states.
(Reporting by Ross Kerber; Editing by David Gregorio and Chris Reese)