2007 Annual Report - AIG.com
2007 Annual Report - AIG.com
2007 Annual Report - AIG.com
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American International Group, Inc. and Subsidiaries<br />
Part II<br />
Item 5.<br />
Market for the Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of<br />
Equity Securities<br />
<strong>AIG</strong>’s <strong>com</strong>mon stock is listed on the New York Stock Exchange, as well as on the stock exchanges in Paris and Tokyo.<br />
The following table presents the high and low closing sales prices and the dividends paid per share of <strong>AIG</strong>’s <strong>com</strong>mon<br />
stock on the New York Stock Exchange Composite Tape, for each quarter of <strong>2007</strong> and 2006:<br />
<strong>2007</strong> 2006<br />
Dividends<br />
Dividends<br />
High Low Paid High Low Paid<br />
First quarter $72.15 $66.77 $0.165 $70.83 $65.35 $0.150<br />
Second quarter 72.65 66.49 0.165 66.54 58.67 0.150<br />
Third quarter 70.44 61.64 0.200 66.48 57.76 0.165<br />
Fourth quarter 70.11 51.33 0.200 72.81 66.30 0.165<br />
The approximate number of holders of <strong>com</strong>mon stock as of January 31, 2008, based upon the number of record holders, was 56,500.<br />
Subject to the dividend preference of any of <strong>AIG</strong>’s serial preferred stock that may be outstanding, the holders of shares of <strong>com</strong>mon<br />
stock are entitled to receive such dividends as may be declared by <strong>AIG</strong>’s Board of Directors from funds legally available therefor.<br />
In February <strong>2007</strong>, <strong>AIG</strong>’s Board of Directors adopted a new dividend policy, which took effect with the dividend that was declared in the<br />
second quarter of <strong>2007</strong>. Under ordinary circumstances, <strong>AIG</strong>’s plan is to increase its <strong>com</strong>mon stock dividend by approximately<br />
20 percent annually. The payment of any dividend, however, is at the discretion of <strong>AIG</strong>’s Board of Directors, and the future payment of<br />
dividends will depend on various factors, including the performance of <strong>AIG</strong>’s businesses, <strong>AIG</strong>’s consolidated financial condition, results<br />
of operations and liquidity and the existence of investment opportunities.<br />
For a discussion of certain restrictions on the payment of dividends to <strong>AIG</strong> by some of its insurance subsidiaries, see Note 14 to<br />
Consolidated Financial Statements.<br />
The following table summarizes <strong>AIG</strong>’s stock repurchases for the three-month period ended December 31, <strong>2007</strong>:<br />
Maximum Number<br />
Total Number of Shares that<br />
of Shares<br />
May Yet Be<br />
Total Number Purchased as Part Purchased Under the<br />
of Shares Average Price of Publicly Announced Plans or Programs<br />
Period Purchased (a)(b) Paid per Share Plans or Programs at End of Month (b)<br />
October 1 - 31, <strong>2007</strong> 13,964,098 $66.12 13,964,098<br />
November 1 - 30, <strong>2007</strong> 5,709,067 61.56 5,709,067<br />
December 1 - 31, <strong>2007</strong> 1,584,199 55.58 1,584,199<br />
Total 21,257,364 $64.11 21,257,364<br />
(a) Reflects date of delivery. Does not include 49,583 shares delivered or attested to in satisfaction of the exercise price by holders of <strong>AIG</strong> employee<br />
stock options exercised during the three months ended December 31, <strong>2007</strong> or 23,300 shares purchased by ILFC to satisfy obligations under employee<br />
benefit plans.<br />
(b) In February <strong>2007</strong>, <strong>AIG</strong>’s Board of Directors increased <strong>AIG</strong>’s share repurchase program by authorizing the repurchase of shares with an aggregate<br />
purchase price of $8 billion. In November <strong>2007</strong>, <strong>AIG</strong>’s Board of Directors authorized the repurchase of an additional $8 billion in <strong>com</strong>mon stock. A<br />
balance of $10.9 billion remained for purchases under the program as of December 31, <strong>2007</strong>, although $912 million of that amount has been<br />
advanced by <strong>AIG</strong> to purchase shares under the program and an additional $1 billion was required to be advanced in January 2008 to meet<br />
<strong>com</strong>mitments that existed at December 31, <strong>2007</strong>.<br />
<strong>AIG</strong> does not expect to purchase additional shares under its share repurchase program for the foreseeable future, other than to meet<br />
<strong>com</strong>mitments that existed at December 31, <strong>2007</strong>.<br />
<strong>AIG</strong>’s table of equity <strong>com</strong>pensation plans previously approved by security holders and equity <strong>com</strong>pensation plans not previously approved<br />
by security holders will be included in <strong>AIG</strong>’s Definitive Proxy Statement in connection with its 2008 <strong>Annual</strong> Meeting of Shareholders,<br />
which will be filed with the SEC within 120 days of <strong>AIG</strong>’s fiscal year end.<br />
26 <strong>AIG</strong> <strong>2007</strong> Form 10-K