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AIG at the Friday night dump…

As footnoted regulars know, Friday night is when the best stuff is dumped at the SEC. One of the last filings to come in this past Friday was this 8K filed by American International Group (AIG). The filing focuses on the new Special Master for Compensation rules that we footnoted last week. This Bloomberg story has the highlights from Friday’s filing. In a nutshell, CFO David Herzog received $1 million on Friday and EVP for the Property and Casualty Group Kristian Moor received $1.6 million. All told, AIG executives received $12.1 million on Friday.

But what we found even more interesting was the lengthy agreement between AIG and the Treasury Department which was also included in Friday’s filing. Here’s a few highlights:

  • Cash compensation at AIG will decline by an average 91% from 2008 levels
  • Total compensation will decline by an average of 58% from 2008 levels
  • Employees of AIG Financial — the unit at the center of the mess — will only receive base salaries for the remainder of 2009 and those that pledged to return previously awarded retention bonuses must return them immediately. (I’m not quite sure how this will work, but it’s in the letter. Will federal Marshalls come a-knocking?)
  • No tax gross-ups

That’s the highlights, though the letter itself is pretty lengthy and worth at least a skim.

If you’re interested in knowing what else is being dumped at the SEC on Friday nights, you should check out the new Friday Night Lights series that I’m doing with my partners, Research Edge which is available via subscription only. You can request a trial of the service by sending a note here.