Uneasiness about shares held by Starr dated back to 2005
Former AIG boss Maurice "Hank" Greenberg insisted that AIG wanted to stop using his Starr International (Sico) to fund its employee compensations scheme as early as 2005, Dow Jones reports.
Greenberg said he was told by the head of AIG's compensation committee in January or February 2005 that there was a "growing uneasiness" about Sico providing the compensation plan.
"It was unlikely the [AIG] board would want to continue the [Deferred Compensation Profit Participation Plan] unless it controlled Sico, which was totally intolerable from the [Sico] voting shareholders' point of view," said Greenberg, Sico's chairman and one of its voting shareholders.
After leaving AIG, Greenberg received a $1.5m salary from Sico and two other former AIG executives were paid $750,000 and $500,000.
$4.3bn raised and invested
Reuters adds that since Greenberg and AIG's parting four years ago, Starr has sold millions of AIG shares for between 80 cents a share and $67 a share for a total of about $4.3bn.
Bloomberg said Sico invested in China, Russia and Eastern Europe with sale proceeds of the $4.3bn.
