American International Group Inc. said Friday in a regulatory filing that it will pay new Chief Executive Robert Willumstad a base salary of $1 million, and also set lucrative annual bonus and incentive pay targets.
AIG named Willumstad to the CEO role last month, replacing Martin Sullivan, who had served as CEO for 3 years.
Willumstad, a former Citigroup executive, who had already been chairman of the world’s largest insurer, took over as CEO after AIG posted two consecutive quarters of record losses on subprime mortgage investments.
AIG said Willumstad’s target annual cash bonus was set at $8 million, and his target for annual long-term incentive pay was set at $13 million.
For 2008, Willumstad’s minimum annual cash bonus will be $4 million, which will be deferred until he is no longer employed by AIG, the company said in the filing with the U.S. Securities and Exchange Commission.
Willumstad is also to receive a one-time $24.5 million restricted stock award, to vest over four years, among other benefits.
(Reporting by Lilla Zuill and Jonathan Stempel, editing by Gerald E. McCormick)
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