American International Group in a proxy filing with the Securities & Exchange Commission yesterday said its directors and officers insurance premiums increased 249 percent.
The 58-page report said the company's D&O coverage for the year ending May 24, 2005 was $9.4 million. For the year ending May 24, 2006 the company said its premium was $32.8 million.
The New York-based insurer also revealed that its former head, Maurice Greenberg, received a salary of $1 million and a bonus of $8 million in 2004, compared to the current president and chief executive officer, Martin J. Sullivan, who received $774,963 in salary and $830,000 in bonus.
In addition, Mr. Greenberg received more than $10 million through his relationships with C.V. Starr & Co. Inc. and Starr International Company Inc. (SICO), both business entities entwined with AIG. Mr. Sullivan received more than $4 million from this relationship. Mr. Greenberg is chairman of SICO and president and CEO of C.V. Starr.
AIG said it is currently untangling these relationships with C.V. Starr and SICO. It said AIG's officers and directors no longer hold positions with either of the offshore insurers.
Mr. Greenberg also received stock options worth more than $9 million, according to the report.
Mr. Greenberg retired from AIG in March in the face of ongoing investigations into finite insurance agreements. Investigators allege the company used the agreements in an accounting fraud scheme.
Until this report, the compensation from C.V. Starr and SICO was not revealed, and AIG said it no longer has access to the company's books, adding that the figures in the proxy report are its best estimate to date. The company added it "intends to provide new or enhanced compensation opportunities to AIG employees in order to reflect the compensation and benefits previously provided by C.V. Starr and SICO."
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.