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Share-Based Compensation Plans (Tables)
 12 Months Ended
Dec. 31, 2022
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)202220212020
Share-based compensation expense - pre-tax(a)
$288 $278 $274 
Share-based compensation expense - after tax(b)
228 220 216 
(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.
(b)We also recognized $19 million of tax benefit due to share settlements occurring in 2022.
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):
202220212020
Expected dividend yield(b)
— %— %— %
Expected volatility(c)
47.60 %47.63 %46.43 %
Risk-free interest rate(d)
1.71 %0.28 %0.18 %
(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.
(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, 2022(b)
2022 LTI2021 LTI2020 LTI2022 LTI2021 LTI2020 LTI
Unvested, beginning of year— 4,388,434 4,166,494 $— $45.00 $31.43 
Granted4,125,047 — — 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 $— 
(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)Represents AIG LTI RSUs converted to Corebridge RSUs as a result of the IPO.
(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.
Schedule of weighted-average assumptions
The following weighted-average assumptions were used for stock options granted:
202220212020
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)
6.00years6.43years6.39years
(a)The dividend yield is the projected annualized AIG dividend yield estimated by 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 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.
(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, 2022UnitsWeighted Average
Exercise Price		Weighted Average
Remaining
Contractual Life		Aggregate
Intrinsic Values
(in millions)
Outstanding, beginning of year13,021,427 $47.12 7.59
Granted1,436,075 61.61 
Exercised(1,515,836)45.10 
Forfeited or expired(48,254)54.80 
Outstanding, end of year12,893,412 $48.94 6.95$186 
Exercisable, end of year5,353,091 $50.27 5.97$70 
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 31,202220212020202220212020
Unvested, beginning of year819,640 1,151,380 1,231,185 $43.95 $46.18 $54.17 
Granted1,070,458 493,140 583,068 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 year1,488,248 819,640 1,151,380 $54.77 $43.95 $46.18 
(a)Represents RSUs converted to Corebridge RSUs as a result of the IPO.