AIG Ties Some Pay to Debt, Part of Effort to Retain Executives
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American International Group Inc., the insurer bailed out by the U.S. government, will pay some executives in units whose value is tied mostly to debt, rather than common stock, as it seeks to retain managers.
Some compensation for the 25 top earners can be paid in units “designed to serve as a proxy for AIG’s long-term value,” the New York-based insurer said in a May 28 filing. The units are 80 percent tied to junior debt that pays 8.175 percent annual interest, and 20 percent to common stock, AIG said.