AIG Just Paid 23% More to Name Duperreault CEO
It’s official. Founder and CEO of Hamilton Brian Duperreault is the new CEO of AIG replacing Peter Hancock, and AIG is now the proud owner of Hamilton USA; a love and marriage kind of a deal. Here’s what you need to know. 1. Hamilton appointed David A. Brown to the position of Interim Group CEO. 2. Hamilton USA will become a stand-alone unit of AIG that will be used to develop Attune, the data-enabled small business MGA that’s a JV between AIG, Two Sigma and Hamilton. This Attune.
3. Investor Carl Icahn is pleased.
4. It was 23% more expensive to bring Duperreault on board – compared to keeping Hancock. The Math: AIG’s stake in Hamilton went down for the bargain price of $110M. Plus as much as $40 million over two years to Hamilton to waive their former CEO’s non-compete agreement. Plus $12 million in cash, $1.5M stock options and an annual pay package valued at $16 million to Duperreault. Life (=Legacy) is good. 5. Too ambiguous to really tell what all this means, yet in the meantime, here’s a tip to the new CEO – offer a reduction-in-force program.