In a filing with the U.S. Securities and Exchange Commission, American International Group Inc. (AIG) explained the accomplishments of Robert Benmosche.
According to the filing, the CEO helped the company avoid negative ratings changes with Standard & Poor’s Corp. and Moody’s Investors Service, reviewed and revised AIG’s restructuring plan and cost control measures and stabilized the insurer’s talent pool. These achievements, among others, earned him a $3.5 million bonus.
Mark Herr, an AIG spokesman, told Bloomberg, “While AIG does not believe that the additional disclosure is material, it filed the amendment to provide full transparency of its compensation decisions.”
On Monday, AIG released a statement that it reduced its outstanding principal balance to slightly more than $15 billion, not including accumulated interest and fees. The insurer applied nearly $4 billion received from International Lease Finance Corp. (ILFC) to the Federal Reserve Bank of New York (FRBNY) Revolving Credit Facility (credit facility).
The payment of $3.95 billion represents the single largest cash payment AIG has made to the credit facility and is the largest reduction in the credit facility's principal balance since AIG placed AIA Group Limited (AIA) and American Life Insurance Co. (ALICO) into Special Purpose Vehicles last December and exchanged preferred equity interests in AIA and ALICO for a $25 billion reduction in the balance outstanding on the credit facility.
"This is continuing tangible evidence of AIG's progress in repaying the American taxpayers," says Benmosche. "AIG is getting stronger every day. We still have more work to do, but we will finish the job and make sure we repay the American taxpayers."
With the repayment, AIG's total principal and interest owed on the credit facility is approximately $21 billion. AIG anticipates the repayment will trigger an accelerated amortization of the prepaid commitment fee asset, resulting in an approximately $650 million pre-tax charge being taken by AIG.
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