Severance Pay for Shearson’s Ousted Chief: $10 Million

Peter A. Cohen, who was ousted as chairman of Shearson Lehman Hutton Inc. earlier this year, will receive a severance package worth about $10 million, individuals familiar with the pact said today.

Cohen, 43, was ousted by American Express Co.’s chairman, James D. Robinson III, as part of an overhaul designed to stem mounting losses and morale problems at the nation’s second-largest securities firm.

Cohen will receive $2.6 million in severance pay plus stock and options amassed during a 20-year career that values the total package at about $10 million, according to people familiar with the package, who asked not to be identified.