AIG Denies Full Bonus to Chartis' Moor
At a time when executive pay is still under intense public and governmental scrutiny, formerly bailed out American International Group Inc. is taking a business-as-usual approach to its policy of doling out bonuses.
Kristian Moor, head of AIG's property/casualty arm Chartis Inc., won't receive his full bonus, according to a Bloomberg report, because of “underachievement of certain financial metrics.” He failed to meet the metrics set for him by the company, including maintaining grades from the four ratings companies, according an AIG regulatory filing. However, Moor did meet the strategic and operational metrics set for him, AIG said.
The parent company apparently was displeased about having to set aside about $4.2 billion last month to boost Chartis' reserves, after the P&C arm's claims costs were higher than expected.
Moor was awarded incentive pay equal to 90% of the $1.9 million target set for 2010, or $1.71 million, AIG said in the filing. He received a salary of $5 million in stock and $700,000 in cash.
Additionally, the filing stated that AIG President and CEO Robert Benmosche was awarded his full incentive of $3.5 million, all while earning $7 million in cash and stock for 2010.
The filing goes on to state that Peter Hancock, head of finance and risk, received 120% of his incentive pay—$4.3 million—for less than 11 months of work. Hancock received $2.4 million in stock and $1.5 million in cash for the year.
The Treasury Department's Office of the Special Master continues to oversee AIG's compensation, Bloomberg reports.
as reported by Insurance Networking News, last summer SNL Financial released its 2010 Executive Compensation Review , which catalogued the executive pay for AIG's top-level personnel, finding that Benmosche had the highest base salary, his subordinates out-earned him in terms of total pay.
Benmosche tallied the largest base salary at $3,077,622, his aggregate pay package of $4,639,188 placed him 96th on the list of total compensation. Moor pulled down $10,409,171, AIG EVP Life Insurance Rodney Martin took home $9,990,550, AIG EVP Foreign General Insurance Nicholas C. Walsh was paid $8,962,420 and AIG EVP and CFO David Herzog earned $6,068,346.
SNL's list was headed by ACE Limited Chairman, President and CEO Evan Greenberg, who netted $21,297,698 in total pay. Jay Fishman, chairman and CEO of the Travelers Cos. Inc., placed second with $20,102,833.