AIG's Greenberg Waives Bonus
NU Online News Service, April 8, 12:59 p.m. EST?Maurice Greenberg, American International Group's chairman and chief executive officer, waived a year-end bonus of $5 million for 2000 and froze pay for all employees in 2001, according to a company Securities and Exchange Commission filing.
The information was contained in a proxy statement that announced the annual shareholders meeting would be held May 15 at the company's New York office, 72 Wall Street.
In the portion of the filing from the AIG Stock Option and Compensation Committee, the five-member group said that Mr. Greenberg "indicated that, in light of the losses suffered by AIG as a result of the September 11 terrorist attacks, bonuses for senior management would not be appropriate."
AIG sustained more than $800 million in claims related to the attack on the World Trade Center's twin towers.
The committee said it was informed that a salary freeze was imposed on all 81,000 employees, while at "lower levels of management, year-end bonuses had been capped to 2000 levels."
Mr. Greenberg, while he received no bonus, received options to buy 375,000 AIG shares. During 2001, he recognized $13.6 million from exercising those options.
The CEO's salary is $1 million. The filing said it is AIG's current intention that all compensation for the CEO in excess of $1 million will be performance-based to make it tax deductible.
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