Oaktree’s CEO Wintrob Paid $15.2 Million by AIG as He Left FirmSonali Basak and Doni Bloomfield
Jay Wintrob, who left American International Group Inc. in 2014 after he was passed over for the job of chief executive officer, received compensation valued at $15.2 million in his last year at the insurer.
That’s $3.17 million more than the package granted to CEO Peter Hancock, New York-based AIG said Monday in a regulatory filing. More than 40 percent of Wintrob’s pay came in a $6.52 million lump-sum severance. Wintrob, 58, was hired by Oaktree Capital Group LLC, the world’s biggest distressed-debt investor, as CEO in October with annual compensation of at least $5 million.
Formerly the head of AIG’s life unit, Wintrob was considered a contender to follow Robert Benmosche as CEO. Hancock, 56, who previously ran the property & casualty business, has restructured management after Benmosche shrunk operations amid a government bailout.
“After becoming CEO in September, I further refocused AIG’s businesses and aligned them by clients served -– commercial and consumer -– rather than by products offered,” Hancock said in an annual letter to shareholders on Monday. “AIG has greatly simplified and de-risked its structure.”
AIG gained 1.2 percent to $54.68 in New York trading on Monday. It has declined about 2.5 percent since Hancock took over as CEO on Sept. 1.
Hancock was paid $12.06 million last year, with a base salary of $1.43 million. He exceeded his target compensation under a revamped plan to reward executives for performance. He was paid $9.65 million in 2013 when he led the P&C unit.
Wintrob’s 2014 compensation included a base salary of $1.38 million and a total of $6.56 million related to his separation from the company. He was paid $9.44 million in 2013. Hancock could make more than $27.9 million under his severance plan, according to the filing.
Kevin Hogan, chief of the consumer business that includes auto and home insurance, took control of life coverage, which had been overseen by Wintrob. Hogan was paid $9.01 million for 2014, the first time his compensation was listed in AIG’s proxy. John Doyle, 51, CEO of the commercial unit and a member of Hancock’s new operating committee, received $8.24 million.
Benmosche, who died in February during treatment for lung cancer, received $11.4 million last year. His son was paid $260,576, the filing shows. The younger Benmosche holds a real estate-related role with the insurer, Jon Diat, a spokesman for AIG, said earlier this month.