NEW YORK (Bloomberg) ? American International Group Inc., the insurer that ousted Chief Executive Officer Maurice (Hank) Greenberg amid an accounting probe, paid Martin Sullivan $13.8 million in his first year in charge.

Sullivan?s 2005 compensation included a salary of $963,462, a bonus of $6.79 million, and stock options valued at $2.95 million on their grant date, New York-based AIG said in a regulatory filing on Thursday.

Other incentive compensation, part of a new incentive plan for senior executives, totalled $3.08 million.

Sullivan, 51, navigated AIG through a $3.9 billion earnings restatement and investigations into accounting and sales practices after replacing Greenberg in March, 2005. In February, the company agreed to pay $1.64 billion to end the probes by state and federal regulators.

?When Mr. Sullivan became chief executive officer in March 2005, his and the board?s mutual goals were to stabilise the organisation and deal forthrightly with the unprecedented challenges confronting AIG,? the company said in the filing. ?Under Mr. Sullivan?s leadership, the management team demonstrated remarkable dedication and resilience.?

Sullivan?s 2005 pay was less than half the $30.6 million Greenberg, 80, received a year earlier. Sullivan, 51, received $7.34 million in 2004, when he was chief operating officer.

Sullivan?s $3.08 million in other compensation includes 1,250 ?senior partner units? valued at $2.75 million. The units are tied to increases in AIG?s book value.

They are meant to replace deferred compensation previously paid to senior executives, without board oversight, by C.V. Starr & Co., a private group of insurance agencies controlled by Greenberg, the filing said.

In addition, C.V. Starr has paid $175.9 million to buy out all the AIG executives who held its stock. Sullivan received $10.1 million for his 1,250 CV Starr shares, according to AIG?s filing.

Under Greenberg, AIG executives also received deferred compensation, in the form of AIG stock, from another of Greenberg?s companies, Starr International Co.

Because the payments were made by an outside company, they weren?t approved by AIG?s board and didn?t show up on AIG books as expenses. AIG has set up a replacement programme which will provide executives with deferred awards of AIG shares if profit in 2005 and 2006 is higher than it was in 2003 and 2004.

AIG has sued Starr International for control of most of the 308 million shares of AIG stock it still holds.

AIG separately named James Orr III, chairman of the Rockefeller Foundation?s board of trustees, to its board. His nomination will be voted on by shareholders at the company?s annual meeting May 17.