Look for the next chief executive of American International Group Inc. to come from the ranks of six new board members expected to join the troubled insurer next month. It seems unlikely that any outsider would want any part of what many observers consider the most thankless job in corporate America.
“Whoever is chosen, it would be best if that individual had experience in global finance — with some insurance, investment and structured finance background,” said long-time insurance industry watcher Gloria Vogel, managing director at Vogel Capital Management.
That would seem to best describe incoming director Harvey Golub. From 1993 through 2001, Mr. Golub was CEO of credit card giant American Express. Under his watch, AmEx became prominent in the investment advisory business. Mr. Golub surely knows at least rudiments of structured finance because AmEx, like many financial institutions, fed that business by packaging its credit card receivables into securities that were sold to investors. Prior to joining AmEx, Mr. Golub was a senior executive at consultant McKinsey.
The remaining incoming directors include former CEOs Robert “Steve” Miller, of Delphi, an auto parts maker that’s been stuck in bankruptcy court for years; Northwest Airlines’ Douglas Steenland, and Sears Roebuck’s Arthur Martinez. Also joining the board are retired KMPG partner Christopher Lynch and former Boeing senior vice president Laurette Koellner.
Whoever takes the job figures to get paid vastly more than outgoing CEO Edward Liddy, who assumed the role last fall at the behest of former Treasury Secretary Hank Paulson, and took a token annual salary of $1. The new leader will also have to be ready for frequent and unpleasant meetings with members of Congress still furious over the massive bailout of
AIG. Mr. Liddy told Congress earlier this month that it would take three to five years for
AIG pay back taxpayers.
