DOW JONES NEWSWIRES
American International Group Inc. (AIG) said Chairman and Chief
Executive Edward M. Liddy plans to step down from the company once
a replacement is found, furthering the company's recent efforts to
strengthen its corporate governance in the wake of the U.S.
government's rescue last year.
The company said in a release Thursday that Liddy also
recommended the chairman and CEO role be separated.
Last week, trustees overseeing the government's nearly 80% stake
in the embattled insurer promised swift changes to the board and
pleaded for lawmakers' cooperation as the company aimed to
formulate "a fair and effective compensation system."
The furor has died down, but earlier this year AIG was the
subject of sharp criticism when it paid out big bonuses after
receiving billions in government aid. However, the trustees have
warned Congress's chilly relations with AIG put the government's
huge investment at risk.
The insurer on Tuesday unveiled a slate of six new board
nominees, which are to be voted on at the annual meeting June 30.
The new board will be composed mostly of independent directors.
AIG said Thursday that Liddy determined the company should take
actions to install a more permanent leadership team and structure
when it reconfigures the board. The company said the search for
Liddy's replacements will include participation by both the new
board and the trustees of the AIG Credit Facility Trust.
Liddy was named to his post in September after the company
agreed to a bailout by the federal government. The funding was
contingent on the agreement that CEO Robert Willumstad would step
aside. Before taking the helm at AIG, Liddy served as head of
insurer Allstate Corp. (ALL).
Shares rose 2.2% after-hours to $1.84.
-By Shara Tibken, Dow Jones Newswires; 201-938-2168;
shara.tibken@dowjones.com;