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Peter Hancock is getting $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, 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, dated March 15.

Hancock’s departure came after several directors told him they did not want to get into a battle with activist investor Carl Icahn, who has pushed AIG to split up into three separate units and has been critical of Hancock. Hancock chose instead to focus on streamlining and returning $25 billion over two years to AIG shareholders. He also replaced a number of longtime executives.

Source: SEC filings

Related:

• How AIG CEO Hancock Ended Up on Way Out
• AIG CEO Hancock to Depart Under Pressure from Icahn, Other Investors

Topics AIG