AIG chief executive earns nearly $22.5M

Article Courtesy of The Miami Herald

Published  April 7, 2007

NEW YORK -- Martin J. Sullivan, who has been running insurance giant American International Group Inc. since the ouster of longtime chief executive Maurice "Hank" Greenberg, received compensation valued at nearly $22.5 million in 2006, according to a regulatory filing Friday.

Sullivan, 52, who is president and chief executive of AIG, collected a salary of $1 million, a bonus of $10.1 million and non-equity incentive plan compensation of $5.8 million, according to the proxy filed on Good Friday with the Securities and Exchange Commission.

His "other" compensation totaled $703,432 and included some $257,498 for personal use of corporate aircraft, $135,014 for a car and driver and $278,250 for home security. The home security spending was "a result of implementing the recommendations of independent, third-party security studies," the filing said. It did not elaborate.

In addition, Sullivan also was awarded restricted shares under the 2006 performance program with an estimated value of $4.88 when they were granted.

The Associated Press calculations of total pay include executives' salary, bonus, incentives, perks, above-market returns on deferred compensation and the estimated value of stock options and awards granted during the year. The calculations don't include changes in the present value of pension benefits and sometimes differ from the totals released by the companies.

The proxy was filed in advance of AIG's annual meeting on May 16 in New York City.

AIG had a very profitable year in 2006, with net income totaling $14.05 billion, or $5.36 per share, compared with $10.48 billion, or $3.99 per share. Its fourth-quarter profit rose eight fold from the year-earlier period when the insurer spent $1.64 billion to settle the allegations of improper accounting practices.

Sullivan took over as head of the New York-based company in March 2005 after the AIG board removed Greenberg, who had led the company for nearly four decades, amid federal and state probes into accounting irregularities in AIG's property and casualty insurance business. Greenberg later resigned the chairmanship, too.

British-born Sullivan had served as AIG's vice chairman and co-chief operating officer before being named chief executive.