AIG ex-chief to forfeit $19 million package

New York Attorney General Andrew M. Cuomo today confirmed American International Group Inc.’s agreement to freeze ex-CEO Martin Sullivan’s compensation package.
Mr. Cuomo sent a letter to Edward Liddy, AIG’s new chief executive, to confirm the New York insurer’s cooperation with the Attorney General’s Office.
The missive is the latest dispatch from the attorney general, who last week sent a letter to AIG’s board demanding that the company cease covering “extravagant” expenditures and recover unreasonable payments — or face legal action.
Mr. Sullivan’s contract calls for some $19 million in payments, plus other benefits, according to the letter.
The company has also agreed that no money will be distributed from the $600 million deferred-compensation and bonus pools in its financial-products subsidiary — the unit which Mr. Cuomo said was “largely responsible for AIG’s collapse.”
He also said that he thinks that Joseph Cassano, the former head of the financial products unit, has a share of $69 million of the funds in that subsidiary.
Five other top executives have a combined share of the funds totaling $93 million.
“It is my position that until the taxpayers are repaid with interest the more than $120 billion that has been used in the rescue financing of AIG, no funds should be paid out of these pools to any executives,” Mr. Cuomo wrote in his letter.
Nicholas Ashooh, an AIG spokesman, didn’t immediately return a phone call seeking comment.

Related Topics: American International Group (AIG)