Since taxpayers are now on the hook to the tune of $80 billion to AIG partly for the decisions Sullivan made as CEO it's the least we can expect that he'll be the first to chip in.
At the very least we need to take every cent that man has to send a message to other executives willing to gamble with so many other people's future. Consider it a deterrent. Sort of like capital punishment.
When you break this down this man and the other executives at his company just stole money from you, me and everybody else that's filled out a W-4. It's long past time that we went a little medieval on their asses.