AIG 2010 Annual Report Download - page 355

American International Group, Inc., and Subsidiaries
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
At December 31, 2010, total unrecognized compensation cost (net of expected forfeitures) was $4 million with a
blended weighted average period of 0.59 years. The cost of awards outstanding under these plans at December 31,
2010 is expected to be recognized over approximately one year.
The following table provides additional information about stock options:
As of or for the Year Ended December 31,
(in millions, except weighted average grant date fair value of options granted) 2008
Intrinsic value of options exercised*$2
Grant date fair value of options vesting 67
Weighted average grant date fair value of options granted*212.20
Cash received from exercise of stock options 16
Tax benefits realized on stock option exercises 1
* There were no options granted or exercised in 2010 or 2009. The grant date fair value of options vesting in 2010 and 2009 was $7 million and
$25 million, respectively.
Other Share-Settled Awards Under Share-Based 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 2010 Plan supersedes the 2007 Plan and is
currently the only plan under which share-based awards can be issued. During 2010, AIG granted DSUs, RSUs,
restricted stock and stock appreciation rights under the 2010 Plan. Of the awards granted in 2010 under the 2010
Plan, only the DSUs and the restricted stock are share-settled. At December 31, 2010, there were 49,803,251
shares reserved for future grants under the 2010 Plan.
In December 2010, AIG granted 587,681 fully-vested shares of non-transferable AIG Common Stock (restricted
stock) under the 2010 Stock Incentive Plan to certain of AIG’s most highly compensated employees and executive
officers. The restricted stock generally becomes transferable in March 2012 or on the third anniversary of grant in
accordance with the terms of the employee’s award.
AIG 2007 Stock Incentive Plan
The 2007 Plan was adopted at the 2007 Annual Meeting of Shareholders and amended and restated by AIG’s
Board of Directors on November 14, 2007. The total number of shares of Common Stock permitted to be issued
under the Plan was 9,000,000. The 2010 Plan superseded the 2007 Plan, therefore, there were no grants made
under the 2007 Plan subsequent to May 11, 2010. During 2010 and 2009, 114,521 and 12,426 RSUs, respectively,
including performance RSUs, were granted under the 2007 Plan. The time-vested RSUs granted in 2010 and 2009
under the 2007 Plan vest on the third anniversary of the date of grant.
Fully-vested shares of non-transferable AIG Common Stock (restricted stock) were granted to certain of AIG’s
most highly compensated employees and executive officers under the 2007 Plan totaling 118,605 and 351,259, in
2010 and 2009, respectively. The restricted stock generally becomes transferable on the first, second or third
anniversary of grant in accordance with the terms of the employee’s award.
AIG 2002 Stock Incentive Plan
The 2002 Plan was adopted in 2002 and superseded by the 2007 Plan. In addition to 2,817 time-vested RSUs,
only the AIG 2005-2006 Deferred Compensation Profit Participation Plan (AIG DCPPP) and the AIG Partners
Plan, which provide share-based compensation to key AIG employees, including senior executive officers remained
outstanding under the 2002 Plan at December 31, 2010.
AIG 2010 Form 10-K 339