American International Group said it plans to dole out close to $6 million to seven executives under the terms of the deferred compensation program it has said it will end by early next year.
The New York-based insurer announced last week that it was ending the plan because it worked as an incentive for certain employees to leave the company.
The company said that approximately $500 million in earned but deferred pay would be distributed in the first quarter of 2009, which is pay that individuals earned but volunteered to defer receiving until a later date presumably for tax benefits. The plans involve 5,600 employees.
In a filing with the Securities and Exchange Commission, the company said under its Senior Partners Plan, a total of 14 separate plans, there was an aggregate $5.96 million.
Six executives will receive $3.04 million. At the top of the list is Jay S. Wintrob, executive vice president, retirement services, who will receive $1.9 million. Win J. Neuger, chief investment officer, will receive $607,953. David L. Herzog, the chief financial officer, will receive $371,422.
The remaining four will receive a total of $161,860 ranging from more than $100,000 to $8,564.
AIG has been under pressure from New York Attorney General Andrew Cuomo to reveal compensation bonuses the company is issuing to employees. Mr. Cuomo gained authority to force the disclosures under state laws that allow for a review of compensation when a company is publicly financed.
AIG is receiving more than $150 billion in government loans to keep itself afloat as it restructures its business after getting hit with heavy losses related to credit default swaps the company invested in.
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