(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.
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