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Among those was the company's decision to set aside shares for those vendors – a maximum of $2,500 worth available in advance of the IPO's pricing.
Nevertheless, when A.I.G. had no such growth around 2000 and 2001 because of claims stemming from the Sept. 11 terrorist attacks, Starr International set aside shares totaling $41.7 million, the court papers say.
The government could set aside shares in any company being privatized and sell them to the masses.
The suit alleges that Salomon set aside shares in hot IPOs for powerful executives' individual accounts with at least a tacit understanding that they would repay the firm by steering their company's business Salomon's way.
Underwriters argue that a young company would do better to set aside shares for a new strategic partner instead of handing out a bonus to investors who have already made a bundle.
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The employer sets aside shares equal to the profit in this case 80 shares ($4,000 divided by $50) to be paid to the employee at a later date, say retirement.
Then those shares could be set aside as shares not to be sold in 2001, and a deemed sale could then be declared for them on next year's tax return with little or no tax owed.
(For those interested in the math, Google says it set aside three million shares at the I.P.O. for philanthropic endeavors and spends roughly 1/20th of the current value of those shares every year, along with 1 percent of the previous year's net income. Employee time is harder to measure, officials say).
Starr International, according to A.I.G.'s 2000 annual report, is not supposed to set aside A.I.G. shares for executives during any two-year period in its compensation plan when A.I.G. does not report growth in its earnings per share.
The Alaska Permanent Fund was created in 1976 in order to set aside a share of oil revenues to benefit current and future generations.
SAIC sets aside shares each year to be offered as stock options and stock bonuses to employees based on their individual performances — as with the rewards for landing new contracts.
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