AIG 2013 Annual Report Download - page 329

The following table summarizes outstanding share-settled awards*:
Unvested, beginning of year 39,249 119,944 $ 48.29 $ 1,197.96
Granted 8,451,368 – 36.50 –
Vested (2,910,475) (17,977) 36.00 524.12
Forfeited (384,734) (16,018) 35.73 1,178.71
Unvested, end of year 5,195,408 85,949 $ 36.92 $ 1,195.05
*Excludes DSUs and options, which are discussed under the Non-Employee Plans and Stock Options sections, respectively.
The total unrecognized compensation cost (net of expected forfeitures) for the unvested PSUs and unvested
restricted stock were $121 million and $30 million, respectively, and the weighted-average and expected period of
years over which those costs are expected to be recognized are 1.38 years and 4 years for the PSUs, and
5.17 years and 26 years for the restricted stock, respectively.
Options granted under the AIG 2007 Stock Incentive Plan and the 1999 Stock Option Plan generally vested over four
years (25 percent vesting per year) and expire 10 years from the date of grant. All outstanding options are vested
and out of the money at December 31, 2013. There were no stock options granted since 2008 and no shares were
issued in 2013 in connection with previous exercises of options with delivery deferred until 2013. The aggregate
intrinsic value for all unexercised options is zero.
The following table provides a roll forward of stock option activity:
Options:
Exercisable at beginning of year 514,245 $ 1,129.42 2.49
Expired (224,455) $ 1,149.34
Exercisable at end of year 289,790 $ 1,113.99 2.58
During the period we were subject to Troubled Asset Relief Program (TARP) restrictions (under the purview of the
Special Master), we issued various cash-settled share-based grants, including RSUs, linked to AIG Common Stock,
to certain of our most highly compensated employees and executive officers. After the repayment of our TARP
obligations in December 2012, we no longer issue awards under these plans.
Share-based cash-settled awards are recorded as liabilities until the final payout is made or the award is replaced
with a stock-settled award. Compensation expense is recognized over the vesting periods, unless the award is fully
vested on the grant date in which case the entire award value is immediately recognized as expense.
Unlike stock-settled awards, which generally have a fixed grant-date fair value (unless the award is subsequently
modified), the fair value of unsettled or unvested cash-settled awards is remeasured at the end of each reporting
period based on the change in fair value of one share of AIG Common Stock. The liability and corresponding
expense are adjusted accordingly until the award is settled.
Stock Options
Cash-settled Awards
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AIG 2013 Form 10-K 311
ITEM 8 / NOTE 20. SHARE-BASED AND OTHER COMPENSATION PLANS
Weighted Average
Number of PSUs/Shares Grant-Date Fair Value
As of or for the Year AIG SICO AIG SICO
Ended December 31, 2013 Plans Plans Plans Plans
Weighted
Average
Remaining
Weighted Average Contractual
As of or for the Year Ended December 31, 2013 Shares Exercise Price Life
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