Maurice “Hank” Greenberg and three other former American International Group Inc. executives agreed to a $115 million settlement of claims that the insurer overpaid a company he controlled by $1 billion.

Mr. Greenberg’s company, C.V. Starr & Co., gave the men bonuses based on fees from New York-based AIG, according to a lawsuit by a Louisiana pension fund. Insurance will cover about 75% of the settlement, the fund’s lawyer, Stuart Grant, said yesterday in an e-mailed statement.

“Hank really wanted to redeem himself, so the fact that he had to pay even a dollar still creates a cloud over his head,” a professor of management at Johns Hopkins University in Baltimore, Phillip Phan, said. “It allows him to get on with his life, but it doesn’t solve his reputation problem.”

The Teachers’ Retirement System of Louisiana claimed that almost half of the $2.2 billion that AIG paid to Starr between 2000 and 2005 represented sham commissions and fees for work that, in some cases, was done by AIG employees. Investors also questioned why some AIG executives were allowed to serve simultaneously as officers of C.V. Starr, a closely held insurance agency, while profiting from business between the two companies.

The settlement “not only returns some of C.V. Starr’s ill- gotten profits to AIG shareholders, but also advances critical corporate governance goals,” Mr. Grant said. The accord also precludes a September 15 trial in Delaware Chancery Court, he said.