AIG chairman and chief executive officer Edward M. Liddy has informed the company's board of directors that he intends to step down after the board concludes a search for replacements, according to an AIG source. Liddy has recommended to the board that the chairman and CEO roles be separated.
Liddy recommended that once a reconfiguration of AIG's board is completed — a process that will conclude with voting on new director nominees at AIG's June 30 annual shareholder meeting — the company should also initiate a process to install a more permanent leadership team and structure, according to AIG. The board concurs with Liddy's recommendation that the roles of chairman and CEO be separate and intends to conduct a search to fill each position.
"Much work remains to be done at AIG, but much has already been accomplished," Liddy says. "With the financial assistance of the Federal Reserve Bank of New York and the U.S. Department of the Treasury, we have made substantial progress in stabilizing AIG, reducing the systemic risk that led the government to rescue the company, protecting our policyholders and our businesses, and developing a plan to repay American taxpayers. "I am proud that we are now implementing this repayment plan. As we have noted repeatedly, our pace of success will depend on global economic conditions and financial markets. It is likely to take several years. AIG should have a leadership team committed to a similar time horizon and prepared to carry the plan to completion," Liddy adds.
"In mid September 2008, Ed Liddy answered the call of his country and the needs of AIG without reservation amid one of the darkest periods of the current financial crisis," says Stephen A. Bollenbach, AIG's lead director. "Coming out of retirement, he has led AIG effectively and courageously " and without compensation. Today, AIG has a durable capital structure, manageable liquidity, and is executing on a credible plan to repay the American taxpayer. We are deeply grateful for Ed's accomplishments and his leadership, and we wish him well in his return to retirement. He deserves it."
Anthony O'Donnell has covered technology in the insurance industry since 2000, when he joined the editorial staff of Insurance & Technology. As an editor and reporter for I&T and the InformationWeek Financial Services of TechWeb he has written on all areas of information ... View Full Bio