AIG to Treat Stock Options as Expense

American International Group Inc said it will begin treating stock options as an expense from the beginning of 2003.

Chief Executive Maurice Greenberg had said last month when the company announced second-quarter results that AIG would have no concerns for a formal accounting policy mandating the expense of stock options.

The impact in 2003 of expensing stock options is thought by the firm to be at less than one cent a share.