Peter Hancock/Bloomberg

Peter Hancock gets $5 million in cash to stay on as American International Group’s chief executive officer while the board searches for his replacement. But the insurer’s departing president and CEO will forgo his bonus, according to recent regulatory filings.

The struggling insurer disclosed on March 9 that Hancock would step down after AIG posted four losses in six quarters, including a $3 billion 2016 Q4 loss disclosed in February.

Hancock gets a $5 million cash lump sum “transition award” for staying on through the transition period, states a March 17 letter from the AIG board to Hancock. The letter adds that he doesn’t get the money, in part, if he leaves before a successor is named or if he is fired before that point.

Meanwhile, the board also determined that Hancock won’t get his 2016 bonus, according to a separate regulatory filing dated March 15.

Activist investor Carl Icahn had pushed AIG to split up into three separate units, but Hancock chose instead to focus on streamlining and returning $25 billion over two years to AIG shareholders. Icahn was happy with some moves, such as AIG’s deal in August to sell its mortgage unit to Arch Capital Group Ltd. for $3.4 billion. Hancock also replaced a number of longtime executives.

 

Source: SEC filings