The decision-making of outgoing American International Group (AIG) CEO Peter Hancock may have come under the spotlight – but that won’t stop the departing executive from picking up a huge windfall as he walks out the door.
It was just over a week ago that AIG revealed its CEO would be departing following a series of setbacks, including a $3 billion loss in the last quarter with the company stating that Hancock has “informed the board of directors of his intention to resign.” Hancock had noted that he had lacked “wholehearted shareholder support” prior to the announcement – but now the company has revealed that the Englishman will pick up a substantial golden handshake.
According to a Financial Times report, Hancock will pick up $5 million in addition to his regular pay “for service through the transition period.”
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Hancock will not, however, pick up a short-term incentive award for 2016 – which is touted to have been worth around $3.2 million. The reason why this incentive was dismissed has not been officially revealed.
During 2015, Hancock picked up $12.5 million with a package that included short-term incentives of $2.5 million, a pay package of $1.66 million and stock awards of $8.23 million.
The full extent of the departing pay deal for Hancock is set to be released in a proxy statement in about two weeks.
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