American International Group President and Chief Executive Officer Martin J. Sullivan secured an $8.7 million raise last year bringing his pay to $16 million, according to a company filing.
Mr. Sullivan, according to a proxy statement filed April 5 with the Securities and Exchange Commission increased his salary from $7.3 million in 2004.
The complicated compensation package included a variety of bonuses, stock options and other payments including a base salary beginning in March 2005 of $963,462, an annual bonus and other "cash compensation" of $6.79 million, a year end bonus of $1 million and supplemental stock options.
Mr. Sullivan, who was promoted from the positions of vice chairman and co-chief operating officer, has served more than 30 years at AIG.
According to the proxy document, Mr. Sullivan until Jan. 1 had an agreement with the company that if he were to be terminated involuntarily without cause he would receive a severance payment of $15 million, three years of benefits under AIG' health, and life insurance plans as well as benefits under AIG's retirement plans.
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