Hank Greenberg wins T-Day dump award!

November 30, 2009

We were expecting a big dump on both Wednesday afternoon and again on Friday. Something good and juicy from some big-name company hoping to get lost in the Thanksgiving frenzy! Boy were we disappointed! According to the folks at SEC Watch, Fortune 1000 companies only filed 32 8Ks on Thursday and only 7 on Friday. It seems that even the people at large companies that write and file things with the SEC were given an extended holiday weekend.

That’s not to say that a few things didn’t catch our eye. We liked this 8K filed by Bank of America (BAC) on Friday just after the market closed. In the filing, the company disclosed that it was lowering the salaries for two of its top executives — CFO Joe Price and Mortgage President Barbara Desoer and replacing some of that cash in the form of stock unit awards. The WSJ has a summary of the details here.

But by far the best filing — out of admittedly a small crop — was this 8K filed by AIG (AIG) late Wednesday. In it, the company announced the settlement of all disputes with former Chairman Maurice “Hank” Greenberg that could have AIG paying up to $150 million in legal fees, but which settles all claims. This Bloomberg story has a good summary of the details.

The part we especially liked was Exhibit B of of the MOU, which spelled out the things that AIG is required to return to Greenberg. Here’s the list:

1. Photographs of Mr. Greenberg and Cornelius Vander Starr located in AIG’s Washington, D.C. office.
2. Photographs of Mr. Greenberg and Chinese leaders in AIG’s Shanghai building.
3. Persian rug previously located in anteroom of board room on 18th floor of 70 Pine Street.
4. Any other materials of a personal nature that are not AIG business records that were located in AIG facilities at the time of Mr. Greenberg’s retirement and that are still maintained in such facilities.

Admittedly, we’re not particularly knowledgeable about Persian rugs, but it must be a pretty special one if it’s worth this kind of fight over.

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