American International Group will give outgoing CEO Martin J. Sullivan a severance packaged valued at $47 million. Sullivan’s resignation took effect July 1, according to a Reuters report.
Sullivan will receive severance of $15 million and a bonus of $4 million for the portion of the year he worked. He will also maintain outstanding equity and long-term cash awards valued at approximately $28 million, according to the regulatory filing.
Sullivan resigned after AIG wrote down $20 billion in losses on the market value of assets linked to subprime mortgages.
Sullivan was replaced by former Citigroup banker Robert Willumstad. Willumstad was already chairman and plans to complete a plan to revamp AIG by September 2008. AIG last month reported its worst results in 89 years.