Major shareholders concerned about American International Group Inc.’s $85 billion loan agreement with the federal government plan to meet Monday to discuss alternatives to the bailout plan, according to a person familiar with the matter.

Meanwhile, departed Chief Executive Robert Willumstad, who was replaced in Treasury’s rescue of the insurance giant, told the company Sunday that he won’t accept his severance payment of $22 million, according to a person familiar with Mr. Willumstad’s decision.

Shareholders who are dissatisfied with the deal are exploring ways to quickly pay off the loan, which gave the federal government the right to take 80% of the insurer. Among the shareholders exploring the idea are some of AIG’s largest mutual-fund holders, according to a person familiar with the matter. Mickey Kantor, a cabinet member under former President Bill Clinton, is representing some shareholders.

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