Former American International Group Inc. Chief Executive Maurice “Hank” Greenberg and the company’s former chief financial officer will get $60 million from AIG’s insurers as part of a proposed settlement to resolve shareholder derivative claims.
The money paid by AIG’s insurance carriers will go to Greenberg and Howard Smith, former chief financial officer, “as reimbursement for their legal fees and expenses,” AIG spokesman Mark Herr said.
The settlement total is $150 million, with $90 million going to AIG, minus attorneys’ fees for the plaintiffs that filed the claims on behalf of AIG, Herr said.
More than 20 current and former officers and directors are involved in the settlement, he said. The investors alleged they were deceived about problems at the insurer and lambasted bonuses the executives received.
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“We are pleased this matter has been satisfactorily resolved,” Herr said in an email.