Former Shearson Chief to Get $10 Million in Severance Pay

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 Wednesday.

Cohen was ousted in January by American Express Co. 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. American Express holds a controlling interest in the brokerage.

The severance package completes the much-publicized separation as the firm continues a major restructuring that includes returning to its old Shearson Lehman Bros. name.