American International Group said it plans to dole out close to $6 million to seven executives under the terms of the deferred compensation program it has said it will end by early next year.

The New York-based insurer announced last week that it was ending the plan because it worked as an incentive for certain employees to leave the company.

The company said that approximately $500 million in earned but deferred pay would be distributed in the first quarter of 2009, which is pay that individuals earned but volunteered to defer receiving until a later date presumably for tax benefits. The plans involve 5,600 employees.

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