AIG Director Golub will replace Liddy as chairman

American International Group Inc. said today director Harvey Golub will become Monday its non-executive chairman, replacing retiring Chairman Edward M. Liddy. Golub, 70, was elected to the AIG board in May 2009.
AUG 07, 2009
American International Group Inc. said today director Harvey Golub will become Monday its non-executive chairman, replacing retiring Chairman Edward M. Liddy. Golub, 70, was elected to the AIG board in May 2009. He was chairman and CEO of American Express Co. from 1993 to 2001. AIG in May announced that Liddy, the chairman and CEO hand-picked to lead the company when it was rescued by the government last fall, would step down. The company also agreed at that time with Liddy's recommendation to separate the chairman and CEO roles. AIG said Monday that it named former MetLife Inc. Chairman and CEO Robert Benmosche, 65, as its new president and chief executive. The plan to split the chairman and CEO roles comes as AIG's corporate governance practices continue to receive intense scrutiny, after it paid out millions in bonuses despite a huge bailout from taxpayers. AIG has received $182.5 billion in financial support from the government since September. As part of the loan package, the government has also taken a roughly 80 percent stake in the huge insurance company. Liddy, 63, retired as CEO of Allstate Corp. last year. He was named chairman and CEO of AIG on Sept. 18, in connection with the federal bailout. Liddy, who agreed to run the company for an annual salary of $1, refused an equity grant he was expected to receive as compensation. According to a proxy filing with the Securities and Exchange Commission, Liddy received no bonus, stock-based compensation or other direct compensation from AIG last year. The company's search for new leadership included participation by both the reconstituted board and the trustees of the AIG Credit Facility Trust, which was established to represent government interests in the company. AIG, which was one of the world's largest insurers before last fall's financial panic, is scheduled to report its second-quarter results Friday. The company is now 80 percent owned by the government. AIG's annual shareholder meeting is June 30. At that time, investors will vote on a slate of new independent directors. Shares closed up 53 cents, or 2.4 percent, to $22.53. The stock gained 37 more cents in aftermarket trading to hit $22.90.

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