(Reuters) – American International Group, the insurer whose government bailout was marked by controversy over executive salaries, on Wednesday said its board adopted a clawback policy to recover compensation in case of mistakes or wrongdoing.
In a regulatory filing, AIG said its board adopted the policy last week “to encourage sound risk management and individual accountability.”
The policy provides a mechanism to pull back bonuses and equity awards from executives for at least the one-year period prior to any event that triggers a clawback. Among those triggering events are a financial restatement, failures of risk management or acts that hurt the company's reputation.
AIG received a bailout in September 2008 while on the brink of bankruptcy. Its rescue ultimately totaled $182 billion, all of which the government recouped, plus interest.
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
- Educational webcasts, resources from industry leaders, and informative newsletters.
- Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.
Already have an account? Sign In
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
