AIG’s CEO Got a Raise to $12.5 Million in 2015

AIG Chief Executive Officer Peter Hancock Interview At The NYSE
Peter Hancock, chief executive officer of American International Group Inc., speaks during an interview on the floor of the New York Stock Exchange (NYSE) in New York, U.S., on Tuesday, Jan. 26, 2016. AIG plans to return $25 billion to shareholders over the next two years as Hancock divests assets and seeks to boost returns to protect his job amid criticism from activist investor Carl Icahn. Photographer: Michael Nagle/Bloomberg via Getty Images
Photograph by Michael Nagle — Bloomberg via Getty Images

AIG CEO Peter Hancock isn’t the only American worker to get a 3.6% raise last year. And he’s probably not the only one to get one even when he failed to meet his performance goals.

But he’s only one of a handful of Americans for whom a 3.6% raise can mean another $100,000. With that raise, AIG’s board granted Hancock total compensation of $12.5 million, according to a filing with the Securities and Exchange Commission (SEC).

That’s despite the fact that that AIG executives failed to meet many of the board’s performance goals last year, and that the board decided to cut Hancock’s short-term incentive compensation. Hancock made more overall because of increases to his compensation in the form of stock.

 

The $12.5 million in pay for last year, however, doesn’t put Hancock anywhere near the top of the rankings for record of highest paid CEO. That honor goes to Nick Woodman, who was awarded $284.5 million in 2014, according to Bloomberg’s Compensation Index.