ÌìÃÀÍøÕ¾´«Ã½´«Ã½

American International Group, the world’s largest insurer, cut Chief Executive Martin Sullivan’s 2007 pay by about 48 percent from 2006, to $13.93 million, according to a regulatory filing late Friday.

Sullivan, who is entering his third year as ÌìÃÀÍøÕ¾´«Ã½´«Ã½ chief, was paid $26.7 million in 2006.

The earnings figure was calculated based on salary, bonus, other compensation, non-equity incentive compensation and the grant date fair value of stock and option awards, as disclosed in a filing with the U.S. Securities and Exchange Commission.

ÌìÃÀÍøÕ¾´«Ã½´«Ã½’s net income for the year fell about 56 percent to $6.2 billion from $14.05 billion in 2006.

Last year’s earnings were hurt by nearly $11.5 billion in net unrealized market valuation losses related to an ÌìÃÀÍøÕ¾´«Ã½´«Ã½ Financial Products credit default swap portfolio that had to be written down to reflect deterioration in the mark-to-market valuation of underlying assets.

ÌìÃÀÍøÕ¾´«Ã½´«Ã½ in February said it recorded a $5.3 billion loss in the fourth-quarter, its largest ever. The insurer’s shares fell sharply after ÌìÃÀÍøÕ¾´«Ã½´«Ã½ first disclosed it would have to take a large write-down on the credit default swap portfolio. The shares are down about 16 percent from the start of the year, based on Friday’s $47.30 a share close.

Sullivan took ÌìÃÀÍøÕ¾´«Ã½´«Ã½’s helm after former Chief Executive Maurice “Hank” Greenberg left the insurer, amid an accounting scandal in 2005.

Greenberg remains one of ÌìÃÀÍøÕ¾´«Ã½´«Ã½’s largest shareholders through a personal stake and control of several entities that were once closely affiliated with the company.

(Reporting by Lilla Zuill; editing by Carol Bish.)

Topics ÌìÃÀÍøÕ¾´«Ã½´«Ã½