AIG Pays Former CEO Martin J. Sullivan $47 Million Severance Package

July 2, 2008 (FinancialWire) American International Group Inc. (NYSE: AIG) has paid a $47 million severance package to former chief executive Martin J. Sullivan, whose resignation took effect on Tuesday. Sullivan, who left his position in mid-June after two quarters of record losses at AIG, will receive severance of $15 million, and a bonus of $4 million for the portion of the year he worked. He will also hold on to outstanding equity and long-term cash awards valued at about $28 million. His resignation is being treated as for "good reason" meaning he is entitled to the severance package outlined in his employment agreement but contingent on his not competing with AIG for business for one year. Sullivan, who worked at AIG for 37 years, also will be provided an office and an assistant until the end of December. Shares of AIG rose 27 cents to close at $26.73 Tuesday. FinancialWire is a fully independent, proprietary news wire service of Investrend Information (a division of Investrend Communications, Inc.). FinancialWire news is written by professional journalists, dedicated to pure journalistic standards. FinancialWire does not receive or accept any compensation from any individual or subject company (or representative thereof) for its news or opinions. All FinancialWire news is available at http://www.financialwire.net . Please address any inquiries to [email protected] . Free annual reports for companies mentioned in the news are available at http://investrend.ar.wilink.com/?level=279 .

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