AIG 2011 Annual Report Download - page 354

American International Group, Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
• AIG 2007 Stock Incentive Plan, as amended (2007 Plan), under which AIG has issued restricted stock units
(RSUs), performance restricted stock units (performance RSUs) and restricted stock (superseded by the
2010 Plan); and
• SICO’s Deferred Compensation Profit Participation Plans (SICO Plans).
Share option exercises and other share awards to participants were settled by issuing previously acquired shares
held in AIG’s treasury account through November 30, 2009. Effective December 1, 2009, AIG is settling its share-
settled awards with newly-issued shares of AIG Common Stock. Share awards made by SICO are settled by SICO.
AIG’s non-employee directors received share-based compensation in the form of deferred stock units (DSUs)
under the 2010 Plan with delivery deferred until retirement from the Board. In 2011 and 2010, AIG granted to
directors 21,203 and 14,484 DSUs, respectively.
AIG Stock Option Plan
Options granted under the 2007 Plan and the 1999 Plan remain outstanding at December 31, 2011. These
awards generally vested over four years (25 percent vesting per year) and expire 10 years from the date of grant.
There were no stock options granted since 2008; however, in 2011, AIG issued 506 shares in connection with
previous exercises of options with delivery deferred.
The following table provides a roll forward of stock option activity:
As of or for the Year Ended December 31, 2011 Weighted
Average
Remaining
Weighted Average Contractual
Shares Exercise Price Life
Options:
Outstanding at beginning of year 1,022,407 $ 1,236.64 3.20
Forfeited or expired (312,109) $ 1,383.18
Outstanding at end of year 710,298 $ 1,172.25 2.96
Options exercisable at end of year 710,298 $ 1,172.25 2.96
The aggregate intrinsic value for all outstanding option is zero. At December 31, 2011, no unrecognized
compensation costs remain for outstanding stock options under these plans.
AIG 2010 Stock Incentive Plan
The 2010 Plan was adopted at the 2010 Annual Meeting of Shareholders. The total number of shares of
common stock that may be granted under the Plan is 60,000,000 (the reserve). During 2011, AIG granted DSUs,
RSUs, restricted stock and stock appreciation rights under the 2010 Plan. Each RSU, DSU and share of restricted
stock awarded reduces the number of shares available for future grants by one share. The reserve is also reduced
for the issuance of cash-settled share-based awards regardless of the form in which the award is originally granted.
At December 31, 2011, a total of 31,287,400 shares remained in reserve for future grants under the 2010 Plan.
In December 2011 and 2010, AIG granted 1,135,166 and 587,681, respectively, fully-vested shares of
non-transferable AIG Common Stock (restricted stock) under the 2010 Stock Incentive Plan to certain of AIG’s
340 AIG 2011 Form 10-K
NON-EMPLOYEE PLANS
STOCK OPTIONS
OTHER SHARE-SETTLED AWARDS UNDER SHARE-BASED PLANS