AIG 2013 Annual Report Download - page 327

The following table presents our share-based compensation expense:
Share-based compensation expense – pre-tax*$ 286 $ (16)
Share-based compensation expense – after tax 186 (10)
*For the year ended December 31, 2013, $315 million of pre-tax compensation expense and substantially all of prior years’ compensation
expense were attributed to unsettled liability-classified awards, the values of which are based on our share price at the reporting date. Our share
price was $51.05, $35.30 and $23.20 at December 31, 2013, 2012 and 2011, respectively, and is the primary driver of the volatility in share-based
compensation expense.
During 2013, our employees were issued awards under the AIG 2010 Stock Incentive Plan, as amended (2010 Plan),
and the AIG 2013 Omnibus Incentive Plan (2013 Plan). The 2013 Plan replaced the 2010 Plan as of May 15, 2013,
but does not affect the terms or conditions of any award issued under the 2010 Plan, and is currently the only plan
under which share-based awards can be made.
As of December 31, 2013, the Starr International Company, Inc. Deferred Compensation Profit Participation Plans
(the SICO Plans) are the only legacy plans for which awards remain unvested.
Our share-settled awards are settled with newly-issued shares of AIG Common Stock. Share awards made by SICO
are settled by SICO.
The 2013 Plan was adopted at the 2013 Annual Meeting of Shareholders and provides for the grants of share-based
awards to our employees and non-employee directors. The total number of shares that may be granted under the
2013 Plan (the reserve) is the sum of 1) 45 million shares of AIG Common Stock, plus 2) the number of authorized
shares that remained available for issuance under the 2010 Plan when the 2013 Plan became effective, plus 3) the
number of shares of AIG Common Stock relating to outstanding awards under the 2010 Plan at the time the 2013
Plan became effective that subsequently are forfeited, expired, terminated or otherwise lapse or are settled in cash.
Each share-based unit granted under the 2013 Plan reduces the number of shares available for future grants by one
share. However, shares with respect to awards that are forfeited, expired or settled for cash, and shares withheld for
taxes on awards (other than options and stock appreciation rights (SARs) awards) are returned to the reserve.
During 2013, performance share units (PSUs) and deferred stock units (DSUs) were granted under the 2013 Plan
and 55,618,617 shares are available for future grants as of December 31, 2013. PSUs were issued for off cycle
grants, which are made from time to time during the year as sign-on awards to new hires or as a result of a change
in employee status.
The 2010 Plan was adopted at the 2010 Annual Meeting of Shareholders. The total number of shares of AIG
Common Stock that could be granted under the 2010 Plan was 60 million. During 2013, 2012 and 2011, we granted
PSUs, DSUs, restricted stock units (RSUs), restricted stock and SARs under the 2010 Plan. Each PSU, DSU, RSU,
SAR and restricted stock awarded reduced the number of shares available for future grants by one share.
Subsequent to the adoption of the 2013 Plan in May 2013, no additional grants were made under the 2010 Plan.
The 2013 Long Term Incentive Plan (2013 LTIP), adopted in March 2013, provides for the grant of performance
share units to certain employees, including our senior executive officers and other highly compensated employees.
Each recipient of an award is granted a number of PSUs (the target) that provides the opportunity to earn shares of
20. SHARE-BASED AND OTHER COMPENSATION PLANS
Employee Plans
AIG 2013 Omnibus Incentive Plan
AIG 2010 Stock Incentive Plan
Share-settled Awards
AIG 2013 Long Term Incentive Plan
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AIG 2013 Form 10-K 309
ITEM 8 / NOTE 20. SHARE-BASED AND OTHER COMPENSATION PLANS
Years Ended December 31,
(in millions) 2013 2012 2011
$ 457
297
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