CEO’s $43.1 million pay package gets go-ahead in shareholder meeting

Approval passes through despite proxy advisors' 'reject' recommendation
CEO’s $43.1 million pay package gets go-ahead in shareholder meeting
INSURANCE NEWS
By Terry Gangcuangco
May 10, 2018

It looks like Brian Duperreault, who is celebrating his first year as chief executive of global insurer AIG, has a huge reason to be merry. His 2017 pay package, worth US$43.1 million, has been approved by shareholders despite the ‘reject’ recommendation from proxy advisory firms.

Citing an announcement by AIG chair Douglas Steenland, a Reuters report said the executive pay got the green light during the US firm’s annual meeting of shareholders on Wednesday. This even after International Shareholder Services and Glass Lewis had advised against it.

According to the report, the proxy advisors believe the pay package for Duperreault, who replaced Peter Hancock last May, was not in line with the performance of the insurance company.

But the votes had been cast, with AIG announcing the results thereafter. “Approved, by a vote of 441,882,782 shares for and 267,108,670 shares against, a non-binding advisory resolution to approve executive compensation,” it said in a media release.

The shareholder meeting also saw 11 directors, including Steenland and Duperreault, being elected.

Meanwhile billionaire Carl Icahn, the insurer’s third largest investor as of the end of last year, has reportedly divested his stake in AIG. Citing sources familiar to the matter, Reuters said the activist investor has sold his shares after accumulating them since 2015.

 

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