American International Group yesterday said that it had awarded Martin Sullivan, its ousted chief executive, a severance package worth at least $47m.

Mr Sullivan was replaced as chief last month by Robert Willumstad, the veteran banker and AIG's chairman, following more than $30bn in writedowns and losses at the insurance group related to the credit crunch. Mr Sullivan's departure was deemed a resignation for "good reason", according to AIG. The package will include a $15m severance payment, a $4m pro-rated bonus and equity and long-term cash awards currently valued at $28m.