WASHINGTON (Thomson Financial) - Dismissed American International Group
chief executive Martin Sullivan is likely to walk away with a severance package
of as much as $68 million, a corporate watchdog group said.
The Corporate Library, a group that tracks governance and compensation
issues, made the estimate from the company's executive severance plan and most
recent proxy statement filed with regulators.
Sullivan was ousted over the weekend after AIG reported a first-quarter net
loss of $7.81 billion, the biggest in its history, and had to raise $20 billion
in capital to shore up the balance sheet of the world's biggest insurer.
According to the Corporate Library, the package for Sullivan would include
$26.6 million in cash bonuses, $21.9 million in stock awards and £14 million din
a deferred compensation plan. Pension, salary and insurance benefits would also
be included.
A spokesman for AIG declined to comment on the report, but said Sullivan's
severance would be governed by his CEO contract.
A source familiar with the case said however that the estimate was "way too
high" and more likely to be in a range of $35 to $50 million, but that final
calculations had not been made.
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