Liddy will go after replacements are found
AIG announced today that chairman and chief executive Edward Liddy has informed the board of directors of his intention to step down once the board successfully concludes a search for replacements for these roles.
Liddy has recommended to the board that the chairman and chief executive roles be separated. Earlier this week, the company announced the nomination of six new directors to stand for election at the company’s annual shareholder meeting on June 30, 2009. This slate will reconfigure the board so that a majority of its members will be newly elected independent directors.
Working with the board, Liddy has determined that, coincident with the reconfiguration of the board, the company should also initiate the necessary actions to install a more permanent leadership team and structure. The board concurs with Liddy’s recommendation that the roles of chairman and chief executive be separated and intends to conduct a search to fill each position. The search will include participation by both the reconstituted board and the trustees of the AIG Credit Facility Trust.
“Much work remains to be done at AIG, but much has already been accomplished,” Liddy said. “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 concluded.
“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,” said Stephen 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.”
