Global insurance firm AIG has signed a five-year employment contract with its president, chief executive officer, and board chairman Peter Zaffino.
The firm said in a statement that it would extend Zaffino’s employment with the company until November 2027.
John G. Rice, speaking on behalf of the board, said: “We are fortunate to have Peter continue as the CEO of AIG for at least the next five years. Throughout his career, Peter has developed an excellent track record as a visionary, insightful leader, with an ability to execute comprehensive transformational programs that turn his strategic vision into tangible, measurable success.
“Under Peter’s leadership, AIG has delivered on ambitious operational and financial objectives and is well positioned to continue to drive long-term value for the company’s shareholders and other stakeholders.”
According to the firm’s most-recent 8-K form that it filed with the SEC on Thursday, “Zaffino will receive an annual base salary of $1.5m and will continue to be eligible to receive a target annual cash bonus of $4.5m, determined based on the Board’s assessment of corporate and individual performance goals under AIG’s Annual Short-Term Incentive Plan.
“In addition, Mr. Zaffino will be eligible to receive an annual award under AIG’s Long-Term Incentive Plan, which annual award will have a grant date target value of $14m and will now be comprised 75% of performance share units and 25% of stock options (which represents a shift toward a more performance-based award mix as compared to the Company’s historic annual long-term incentive award mix comprised 50% of performance share units, 25% of stock options and 25% of restricted stock units).”
It added: “In recognition of Mr. Zaffino’s continued leadership and the highly competitive market for talent, the Board approved a special, one-time grant to Mr. Zaffino in the form of restricted stock units having a grant date value of $50m.”
