American International Group Inc. has filed a report that sheds more light on its move to terminate 14 executive compensation plans.
AIG, New York, announced Friday that it was shutting down 14 deferred compensation plans and giving the money back to the participants, to keep participants from leaving the company simply to get the cash out of the accounts.
AIG now says in a report filed with the U.S. Securities and Exchange Commission that the decision will affect the AIG Supplemental Incentive Savings Plan, the AIG Executive Deferred Compensation Plan, the SunAmerica Executive Savings Plan, and 11 other legacy elective deferred compensation plans of AIG subsidiaries that AIG assumed in connection with acquisitions.
No deferrals will be made after Dec. 31, but the accounts will continue to accrue earnings until the account balances are distributed.
AIG says it will terminate all of the plans by April 1, 2009.
The plans hold a total of about $6 million in account value.
Only 4 executives have account balances over $100,000.
Jay Wintrob, the head of AIG’s retirement services business, has the biggest deferred comp plan balance. He should be getting about $1.9 million back when the plans terminate, AIG says.