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American International Group, Inc. Message Board

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  • rekhaus rekhaus Oct 22, 2009 6:27 PM Flag

    AIG surprise earning...

    Watch the runup before earning because all the bad news is already priced in. AIG will surpass $1.25 earning estimate( conditions are much better then Q2) and stock will go +$60.


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    • 60 is the very low ball estimate you are giving i think since it almost tried to pass that level 2 times long time back...i am guessing it might hit 100++ after earnings...if you remove the debt there is no company comparable to AIG that is trading at such cheap levels..for a company that generates $100 billion+ revenues a year that is a small debt.

      my analysis if correct suggests I see a huge runup into earnings and if it surprises it will be a game changing event for AIG since it will be a second qtr in a row to post strong numbers....since 2007..i am not saying it will return to $1300 level where it was in 2007 but yes it will be significant.

    • 21M for bonus is good news because that mean AIG made profit in Q3 because pay zar won't have approved this bonus if they had lost $.


      • 2 Replies to rekhaus
      • The fed is obviously very pleased at how things are progressing at AIG - they would never allow exemptions on the compensation caps if that were not the case.

        In addition, for the new CEO to make public statements that they will be able to pay back all of the TARP funds - those remarks were not off the cuff - the fed. has information that we do not have access to - to allow his $7 million pay package and the exemption on top execs as being 'in the public's best interest" they clearly are feeling optimistic about AIG.

        The earnings this quarter are going to be a bigger upside surprise than last quarter - not just investment gains - big premium income gains, and very favorable loss experience will make this a blowout period - thank GOD!
        Get ready for launch rocketeers..

      • The 12.1 million paid out in retrention bonuses today- not a drop in the bucket -AIG has 116,000 employees worldwide. The fact that Mr. Federal Pay Czar allowed these payments to a handful of executives does indicate things are on the right track. AIG gets special treatment - the FED has a vested interest, in fact it's in the public interest.

        NEW YORK (Reuters) - AIG (NYSE:AIG - News), the insurer that received a huge government bail out, said on Friday it is paying $12.1 million in retention awards to some top executives after U.S. pay czar Kenneth Feinberg gave it the green light.

        In a regulatory filing, AIG said Chief Financial Officer David Herzog was paid $1 million, and Kristian Moor, chief executive of AIG's property-casualty division, Chartis, received $1.6 million.

        Jay Wintrob, CEO of AIG's domestic life and retirement services, was another executive to receive a payment.

        American International Group did not disclose the identities of any other recipients. It had voluntarily delayed making the executive payments, promised in 2008, to give Feinberg more time to comb over employee contracts.

        The Obama administration appointed Feinberg in June to scrutinize the pay practices of the seven companies that received the biggest federal aid.

        In a letter to AIG, the U.S. Treasury said it decided the three named executives should be paid the retention awards to keep them. However, it would consider the awards when determining "an appropriate reduction in proposed 2009 cash salaries for these employees," the letter also stated.

        The payments were promised in 2008 to get key employees to stay with AIG, even as it teetered on the brink of financial ruin from losses on subprime mortgage bets.

        AIG CEO Robert Benmosche, who took over the insurer's leadership on August 10, is receiving a salary of $7 million in cash and stock.

        On Wednesday, Benmosche sent a memo to assure employees that Feinberg's jurisdiction was confined to the company's top executives, and that the majority of the company's 116,000 worldwide employees would not be affected.

        But in the filing with the U.S. Securities and Exchange Commission late on Friday, AIG warned that pay restrictions may hurt its ability to retain and motivate its best-performing employees.

60.55+0.23(+0.38%)Oct 25 4:00 PMEDT