(a)As a result of accelerated vesting events, such as retirement eligibility in the year of grant and involuntary terminations, we recognized $67 million, $67 million and $63 million in 2022, 2021 and 2020, respectively, prior to the end of the specified vesting periods. It is our policy to reverse compensation expense for forfeited awards when they occur.

The Company sponsors several stock compensation programs under the AIG Long Term Incentive Plan (LTIP) (as amended) from which performance share units (PSUs), restricted stock units (RSUs), stock options and deferred stock units (DSUs) (collectively units) are issued. In addition, off-cycle grants are made from time to time during the year generally as sign-on awards to new hires or as a result of a change in employee status. The LTIP was governed by the AIG 2013 Omnibus Incentive Plan (2013 Plan), until it was replaced by the AIG 2021 Omnibus Incentive Plan (2021 Omnibus Plan), which was adopted at the annual shareholders’ meeting in May 2021. The adoption occurred after the annual 2021 LTIP awards were granted.

The 2021 Omnibus Plan provided for the grants of share-based awards to our employees and non-employee directors. The total number of shares granted under the 2021 Plan (the reserve) was the sum of 1) 8.1 million shares of AIG Common Stock, plus 2) the number of authorized shares that remained available for issuance under the 2013 Plan when the 2021 Omnibus Plan became effective, plus 3) the number of shares of AIG Common Stock relating to outstanding awards under the 2013 Plan at the time the 2021 Omnibus Plan became effective that subsequently were forfeited, expired, terminated or otherwise lapse or are settled in cash. Each share-based unit granted under the Omnibus Plan reduces the number of shares available for future grants by one share. However, shares with respect to awards that are forfeited, expired or settled for cash are returned to the reserve. As of December 31, 2022, 24,654,162 shares are available for future grants.

The LTIP provides for an annual award to certain employees, including our senior executive officers and other highly compensated employees that may be comprised of a combination of one or more of the following units: PSUs, RSUs or stock options.

The number of PSUs issued on the grant date (the target) provides the opportunity for LTIP participants (usually senior management) to receive shares of AIG Common Stock based on AIG achieving specified performance goals at the end of a three-year performance period. These performance goals are pre-established by AIG’s Compensation and Management Resources Committee (CMRC) for each annual grant and may differ from year to year. The actual number of PSUs earned can vary from zero to 200 percent of the target for the 2022, 2021 and 2020 LTI awards, depending on AIG’s performance relative to a specified peer group and/or the outcome of pre-established financial goals, as applicable.

Vesting occurs on January 1 of the year immediately following the end of the three-year performance and service period. Beginning in 2022, vesting for RSUs and stock options awarded will occur in three equal installments on the first, second and third anniversary of the grant date. Recipients must be employed at each vesting date to be entitled to share delivery, except upon the occurrence of an accelerated vesting event, such as an involuntary termination without cause, disability, retirement eligibility or death during the vesting period. However, for involuntarily terminated employees hired after April 1, 2022 unvested RSUs and options are forfeited on the termination date, while PSUs are pro-rated based on the number of completed years in the performance period.

Prior to 2021, LTI awards accrued dividend equivalent units (DEUs) in the form of additional PSUs and RSUs whenever a cash dividend was declared on shares of AIG Common Stock; the DEUs are subject to the same vesting terms and conditions as the underlying unit. Beginning in 2021, PSUs and RSUs granted via the annual 2021 LTI award (as of the date of grant), and those existing from the 2020 and 2019 LTI awards (as of the third quarter) accrue dividend equivalent rights (DERs) as AIG’s dividends are declared. These DERs will be settled in cash only if the underlying units’ vesting conditions are met; previously accrued DEUs were not impacted by this change.

The fair value of time-vesting RSUs as well as PSUs that are earned based on certain company-specific metrics was based on the closing price of AIG Common Stock on the grant date; while the fair value of PSUs that are earned based on AIG’s relative total shareholder return (TSR) was determined on the grant date using a Monte Carlo simulation.

(a)PSUs will be adjusted by +/-25 percent and +/-10 percent if AIG's TSR is in the top or bottom quartile of the peer group at the culmination of the performance period for the 2021 LTI and 2020 LTI awards, respectively.

(c)We used the historical volatility over the most recent 2.86-year period for AIG and the members of the Peer Group, commensurate with the remaining Performance Period as of the valuation date.

(d)We converted the semi-annual zero-coupon U.S. Treasury rates as of the valuation date to continuously compounded rates. We then chose the continuously compounded risk-free rate that is commensurate with the length of the remaining performance period as of the valuation date and interpolated between the yields of the two-year and the three-year continuously compounded rates to determine the yield.

In connection with the Corebridge IPO, approximately 4 million RSUs held by 735 Corebridge LTIP participants who were actively employed on the IPO date were converted to approximately 10 million Corebridge RSUs in accordance with the anti-dilution provision of the 2021 Omnibus Plan. The vesting terms of the Corebridge RSUs remain the same as the pre-converted RSUs but will be settled in Corebridge common stock. This conversion is considered a modification for accounting purposes and did not result in incremental compensation expense.


	Number of Units			Weighted Average Grant-Date Fair Value
As of or for the Year Ended December 31, 2022(b)	2022 LTI	2021 LTI	2020 LTI		2022 LTI		2021 LTI		2020 LTI
Unvested, beginning of year	—	4,388,434	4,166,494	$	—	$	45.00	$	31.43
Granted	4,125,047	—	—		61.79		—		—
Vested(c)	(602,246)	(146,654)	(2,482,796)		61.75		44.23		31.35
Converted(d)	(1,083,662)	(1,306,677)	(1,441,635)		61.67		44.30		31.69
Forfeited	(158,708)	(238,839)	(242,063)		61.74		44.43		32.09
Unvested, end of year(e)	2,280,431	2,696,264	—	$	61.86	$	45.40	$	—

(b)PSUs represent target amount granted and does not reflect potential increases or decreases that could result from the final outcome of the performance goals for the respective awards, which is determined by the CMRC in the quarter after the applicable performance period ends.

(e)At December 31, 2022, the total unrecognized compensation cost for outstanding RSUs and PSUs was $138 million and the weighted-average and expected period of years over which that cost is expected to be recognized are 0.98 years and 2.75 years.

Stock options were issued as part of the 2022, 2021 and 2020 LTI awards, and to certain newly hired senior executives in 2017 and 2018. Option awards are generally granted with an exercise price equal to the market price of the company’s stock on the grant date and are exercisable up to 10 years from the date of grant, or 3 years from the date of an involuntary termination or the option's expiration date, if earlier. The fair value of the options was estimated on the grant date using the Black-Scholes model for the time-vesting options, and a Monte Carlo simulation for the hurdle-vesting options using the assumptions noted in the following table.


	2022		2021		2020
Expected annual dividend yield(a)	2.08	%	2.89	%	3.97	%
Expected volatility(b)	32.13	%	36.68	%	42.03	%
Risk-free interest rate(c)	1.92	%	0.95	%	0.57	%
Expected term(d)	6.00	years	6.43	years	6.39	years

(c)The risk-free interest rate is the continuously compounded interest rate for the term between the valuation date and the expiration date that is assumed to be constant and equal to the interpolated value between the closest data points on the U.S. dollar LIBOR-swap curve as of the valuation date.


As of or for the Year Ended December 31, 2022	Units		Weighted Average Exercise Price	Weighted Average Remaining Contractual Life		Aggregate Intrinsic Values (in millions)
Outstanding, beginning of year	13,021,427	$	47.12	7.59
Granted	1,436,075		61.61
Exercised	(1,515,836)		45.10
Forfeited or expired	(48,254)		54.80
Outstanding, end of year	12,893,412	$	48.94	6.95	$	186
Exercisable, end of year	5,353,091	$	50.27	5.97	$	70

The weighted average grant-date fair value of stock options granted during 2022, 2021 and 2020 was $10.77, $10.00 and $9.61, respectively. As of December 31, 2022, we recognized $28 million of expense, while $17 million was unrecognized and is expected to be amortized up to 2.25 years. We received $68 million in cash from the exercise of stock options during 2022.

The Company may issue time-vesting RSUs for various reasons including, as a sign-on bonus, retention grant or replacement award in an acquisition. Vesting for these awards ranges from 1 to 5 years and is contingent on continuous service.


	Number of Units			Weighted Average Grant-Date Fair Value
As of or for the Year Ended December 31,	2022	2021	2020		2022		2021		2020
Unvested, beginning of year	819,640	1,151,380	1,231,185	$	43.95	$	46.18	$	54.17
Granted	1,070,458	493,140	583,068		60.16		49.36		35.54
Vested	(290,037)	(699,067)	(535,220)		44.59		50.03		50.89
Converted(a)	(91,300)	—	—		52.90		—		—
Forfeited	(20,513)	(125,813)	(127,653)		55.89		51.80		54.90
Unvested, end of year	1,488,248	819,640	1,151,380	$	54.77	$	43.95	$	46.18

We recognized $21 million of expense related to these RSU grants in 2022. Total unrecognized compensation cost related to these grants was $65 million and the weighted-average and expected period of years over which that cost is expected to be recognized are 2.23 years and 5 years at December 31, 2022.

Our non-employee directors, who serve on our Board of Directors, receive share-based compensation in the form of fully vested DSUs with delivery deferred until retirement from the Board. DSUs granted in 2022, 2021 and 2020 accrue dividend equivalents in the form of additional DSUs equal to the amount of any regular quarterly dividend that would have been paid by AIG if the shares of AIG Common Stock underlying the DSUs had been outstanding. In 2022, 2021 and 2020, we granted to non-employee directors 46,273, 55,133 and 94,062 DSUs, respectively, and recognized expense of $2.7 million, $2.7 million and $2.4 million, respectively.