Shares Of AIG Dip As Embattled CEO Steps Down
May 22 2009 - 12:11PM
Dow Jones News
Shares of American International Group Inc. (AIG) sank Friday
after Chairman and CEO Edward Liddy announced that he would step
down from the troubled insurer as soon as the company can replace
him.
AIG recently traded down 6.1% to $1.70. AIG said Thursday after
the market close that Liddy would step down.
The company also announced that it will ask shareholders to vote
on a reverse 1-for-20 stock split at its annual meeting in June,
and also to authorize an increase in shares, as it reorganizes to
reflect its nearly 80% government ownership.
Andrew Barile, an insurance consultant in Rancho Santa Fe,
Calif., said that newly named board member Harvey Golub is the most
suitable board member to take the chairman role, given his
extensive financial services background. Golub is the former
chairman and chief executive of American Express Co. (AXP).
Barile said the position of chief executive will be difficult to
fill, and could potentially go to a team of executives in an office
of the CEO arrangement, with life and property/casualty insurance
and international experience. "You need the expertise in both
disciplines and global experience" to run the company. But he said
it would be difficult to fill the jobs as long as the company is in
"chaos."
-By Lavonne Kuykendall, Dow Jones Newswires; (312) 750 4141;
lavonne.kuykendall@dowjones.com