AIG Pays Former CEO Sullivan a Severance Package Worth $47 Million

July 1, 2008

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American International Group Inc. said it paid a $47 million severance package to former Chief Executive Martin J. Sullivan, whose resignation took effect Tuesday.

Sullivan, who left his position in mid-June after two quarters of record losses at AIG, will receive severance of $15 million, and a bonus of $4 million for the portion of the year he worked, according to a regulatory filing.

Sullivan also will hold on to outstanding equity and long-term cash awards valued at about $28 million, the filing said.

His resignation is being treated as for “good reason” meaning he is entitled to the severance package outlined in his employment agreement but contingent on his not competing with AIG for business for one year.

Sullivan, who worked at AIG for 37 years, also will be provided an office and an assistant until the end of December.

(Reporting by Dan Wilchins; additional reporting by Phil Wahba; editing by Carol Bishopric)

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Latest Comments

  • September 29, 2008 at 6:24 am
    KO says:
    BAIL THEM OUT WITH THEIR OWN MONEY. WHY SHOULD I HAVE TO PAY FOR SOME IDIOTS RUNNING THE FINANCIAL SYSTEM: THE DISREGARD OF FUNDAMENTAL ECONOMIC PRINCIPLES OF SOUND PRACTICE I... read more
  • September 22, 2008 at 4:20 am
    LARRY LOGIC says:
    TO BOBR: WHEN IN DOUBT, BLAME JOHN. DO NOT HOLD YOUR DEM CRONIES ACCOUNTABLE FOR THEIR COZY RELATIONSHIP WITH FANNY AND FREDDIE, AND MAYBE YOU?
  • September 22, 2008 at 10:00 am
    Brokette says:
    Apparently, you missed the part of the sub-prime mess where the "guvmint" virtually forced lenders to loan to people the banks knew couldn't pay them back. You might want to ... read more
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