AIG settles legal disputes with ex-CEO Maurice Greenberg

American International Group (AIG) has settled all of its outstanding legal disputes with its former chief executive officer Maurice 'Hank' Greenberg.

Mr Greenberg, who ran the company for almost forty years, is set to receive a potential $150 million in legal fees alongside his former finance chief Howard Smith.

The complex four-year legal battle dates back to his controversial departure from AIG in 2005.

Mr Greenberg was forced to retire following a government probe into a reinsurance transaction.

Since then, AIG and Mr Greenberg have pursued each other through US courts on a variety of claims, ranging from money he owed the company to how AIG was being run.

One claim was even related to a Persian rug owned by Mr Greenberg that remained in the AIG offices after his departure.

As part of the settlement, it is now being returned to him.

Earlier this week, the AIG board approved a $7 million salary package for its new chief executive officer Robert Benmosche.

By Claire Archer