v3.24.0.1
Share-Based Compensation Plans (Tables)
 12 Months Ended
Dec. 31, 2023
Share-Based Payment Arrangement [Abstract]  
Schedule of share-based compensation expense recognized in Consolidated Statements of Income
The following table presents our total share-based compensation expense:
Years Ended December 31,
(in millions)202320222021
Share-based compensation expense - pre-tax(a)
$199 $288 $278 
Share-based compensation expense - after tax(b)
157 228 220 
(a)As a result of accelerated vesting events, such as retirement eligibility in the year of grant and involuntary terminations, we recognized $58 million, $67 million and $67 million in 2023, 2022 and 2021, respectively, prior to the end of the specified vesting periods. It is our policy to reverse compensation expense for forfeited awards when they occur. Excludes share-based compensation expense of $60 million, $75 million and $88 million in 2023, 2022 and 2021, respectively, for units issued to Corebridge employees that will be settled in Corebridge common stock.
(b)We also recognized $21 million of tax benefit due to share settlements occurring in 2023.
Schedule of assumptions used to estimate the fair value of PSUs based on AIG's TSR
The following table presents the assumptions used to estimate the fair value of PSUs that vest based on AIG’s TSR(a):
202320222021
Expected dividend yield(b)
— %— %— %
Expected volatility(c)
37.98 %47.60 %47.63 %
Risk-free interest rate(d)
4.42 %1.71 %0.28 %
(a)PSUs will be adjusted by +/-25 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 award.
(b)The award agreement provides that TSR for AIG and each member of the Peer Group will be calculated assuming dividends distributed are reinvested on the ex‑dividend date.
(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.
Summary of outstanding share-settled LTI awards
The following table summarizes outstanding share-settled LTI awards(a):
Number of UnitsWeighted Average Grant-Date Fair Value
As of or for the Year Ended December 31, 2023(b)
2023 LTI2022 LTI2021 LTI2023 LTI2022 LTI2021 LTI
Unvested, beginning of year— 2,280,431 2,696,264 $— $61.86 $45.40 
Granted2,752,390 — — 59.98 — — 
Vested(c)
(876,285)(969,438)(689,706)59.92 61.75 45.97 
Forfeited(141,136)(202,840)(278,707)59.88 61.93 45.85 
Unvested, end of year(d)
1,734,969 1,108,153 1,727,851 $60.02 $61.95 $45.08 
(a)Excludes stock options, other RSUs and DSUs, which are discussed under Stock Options, Other RSU Grants and Non-Employee Plan, respectively.
(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.
(c)Also reflects units that vest as a result of an accelerated vesting event that occurred prior to the specified vesting date but for which share delivery has not yet occurred.
(d)At December 31, 2023, the total unrecognized compensation cost for outstanding RSUs and PSUs was $111 million and the weighted-average and expected period of years over which that cost is expected to be recognized are 1.01 years and 3 years.
Schedule of weighted-average assumptions
The following weighted-average assumptions were used for stock options granted:
202320222021
Expected annual dividend yield(a)
2.14 %2.08 %2.89 %
Expected volatility(b)
25.17 %32.13 %36.68 %
Risk-free interest rate(c)
4.06 %1.92 %0.95 %
Expected term(d)
6.00years6.00years6.43years
(a)The dividend yield is the last dividend from Bloomberg times 4 divided by stock price based on Bloomberg Professional service as of the valuation date.
(b)The expected volatility is based on the implied volatility of 24 months stock option estimated by the Bloomberg Professional service as of the valuation date.
(c)The risk-free interest rate is calculated as the interpolated zero rate as of the valuation date.
(d)The contractual term is 10 years from the date of grant.
Schedule of stock option activity
The following table provides a rollforward of stock option activity:
As of or for the Year Ended December 31, 2023UnitsWeighted
Average
Exercise Price		Weighted Average
Remaining
Contractual Life		Aggregate
Intrinsic Values
(in millions)
Outstanding, beginning of year12,893,412 $48.94 6.95
Granted1,352,039 59.72 
Exercised(1,039,998)41.29 
Forfeited or expired(909,792)50.13 
Outstanding, end of year12,295,661 $50.69 6.81$210 
Exercisable, end of year9,810,882 $47.95 6.24$194 
Summary of outstanding share-settled RSU grants
The following table summarizes outstanding share-settled Other RSU grants.
Number of UnitsWeighted Average Grant-Date Fair Value
As of or for the Year Ended December 31,202320222021202320222021
Unvested, beginning of year1,488,248 819,640 1,151,380 $54.77 $43.95 $46.18 
Granted208,641 1,070,458 493,140 62.42 60.16 49.36 
Vested(252,635)(290,037)(699,067)49.42 44.59 50.03 
Converted(a)
— (91,300)— — 52.90 — 
Forfeited(82,540)(20,513)(125,813)40.70 55.89 51.80 
Unvested, end of year1,361,714 1,488,248 819,640 $57.79 $54.77 $43.95 
(a)Represents RSUs converted to Corebridge RSUs as a result of the IPO.