American International Group's chief executive officer will receive more than $870,000 in interim bonuses this year, but his is not the largest bonus among nine executives announced in a regulatory filing.
In a Securities and Exchange Commission filing late last week, the New York-based insurance powerhouse announced it will pay President and CEO Martin J. Sullivan a total of $873,750 in bonuses to date, $277,500 of which would be paid in this quarter.
The filing was a report on quarterly bonuses the company expects to pay executives. The company said those bonuses were previously paid by C.V. Starr & Co. Inc. and Starr International Company Inc., both Bermuda-based insurers entwined with AIG.
The relationship was severed after the company's former head, Maurice "Hank" Greenberg, who also heads C.V. Starr and Starr International, was forced out as AIG chairman and CEO.
Mr. Greenberg is under investigation by New York Attorney General Eliot Spitzer and federal authorities for practices related to non-traditional reinsurance agreements the company entered into to improperly bolster the firm's financial picture.
In an interview with investigators Mr. Greenberg has invoked his right against self-incrimination and refused to answer questions, according to his legal team.
AIG after Mr. Greenberg's departure restated earnings to the tune of $3.3 billion of the company's book value for the past five years. The restatement amounted to less than 3 percent of the company's worth.
Topping the bonus compensation listings is Edmund S.W. Tse, senior vice chairman life insurance, at $992,500, receiving $265,000 in the quarter. In the number three spot is Thomas R. Tizzio, senior vice chairman general insurance, at $847,500, receiving $217,500 in the quarter.
AIG said it advised executives of their bonuses on July 15.
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