John Neal draws $14.2 million pay package from AIG

Former Lloyd’s of London CEO John Neal is set to receive $14.2 million in compensation from American International Group Inc., more than 11 times his previous pay package.

AIG announced last week that Mr. Neal would join the company as president Dec. 1. He had been slated to join Aon PLC.

In a U.S. Securities and Exchange Commission filing Monday, AIG said it will pay Mr. Neal a base salary of $1.25 million a year and that he would be eligible for a target bonus of $3.75 million and a target annual equity award of $5 million. In addition, he will receive an initial grant of $4.5 million in restricted stock units that will vest over three years, and a cash payment of $2.7 million.

Last year, his total compensation from Lloyd’s paid him total remuneration of £983,000 ($1.23 million).