Hank Greenberg, the former chief executive of American International Group, and three former executives on Thursday agreed to a $115m settlement that brings to an end a lawsuit claiming they had improperly directed commissions to a company he controlled.

The lawsuit, which was brought by a shareholder on behalf of AIG, involves the relationship between AIG and CV Starr, an insurance firm headed by Mr Greenberg and which underwrote some of AIG’s business.