Disgraced insurance giant American International Group yesterday agreed to put roughly $620 million in payments to employees on ice, including $19 million in compensation to ousted CEO Martin Sullivan. The pact amounted to a capitulation by AIG to threats of a civil suit from New York Attorney General Andrew Cuomo. Cuomo has complained about what he calls AIG's excessive spending following the firm's near-collapse and subsequent $122.8 billion federal rescue. In addition to agreeing to free $19 million that was to go to Sullivan, the insurance giant also said it will lock up $600 million in deferred compensation and bonuses that had been set aside for the financial products group, which Cuomo's office described as being "largely responsible for AIG's collapse." Included in the $600 million is $69 million for Joseph Casano, the former head of that unit, as well as $93 million for five other top executives.