AIG chief takes pay-package cut

American International Group Inc. chief executive Martin Sullivan's pay package was sliced by one-third to $14.3 million in 2007 after the insurance company reported a 56% drop in annual profit. The CEO of New York-based AIG received a salary of $1 million, a cash bonus of $3.6 million, $3 million in stock options, performance-based stock awards worth $1.34 million and other long-term incentives valued at $5.43 million, according to a filing with the Securities and Exchange Commission. The package is lower than the $21.2 million that Mr. Sullivan received the previous year. His year-end performance-based bonus was $2.5 million for 2007, compared with $9 million the previous year. In both years, Mr. Sullivan received $1.1 million quarterly bonuses.