AIG reviews CEO succession plans

AP News
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Posted: Oct 27, 2010 6:30 PM
AIG reviews CEO succession plans

American International Group Inc. said Wednesday that its expects CEO Robert Benmosche to continue to work into 2012, but it was reviewing its succession plan in case his status changes.

The company announced Monday that Benmosche had cancer and was undergoing chemotherapy.

Board Chairman Steve Miller would become interim CEO until a long-term replacement was named if that action becomes necessary.

The board said it will review its selection criteria for the next CEO and will continue to discuss succession planning.

AIG says Benmosche feels fine and continues a normal schedule, and it's planning on him remaining in the CEO position until his previously planned departure in 2012.

Benmosche has committed to stay until AIG completes repayment of its taxpayer obligations.

The company received $182 billion from the government.

It announced Sept. 30 that the U.S. Treasury will swap its majority stake in the company for common stock and then sell those shares over time.

AIG was one of the financial companies hardest hit by the credit crisis and received the largest bailout the government doled out. The insurance giant was hurt by its dealings in complex derivatives.

The board released a statement that said it is comfortable with its current succession plan timetable but in light of Benmosche's health condition, it decided to review the process.

"In the event that Bob would become unwilling or unable to continue to effectively serve in his current role, our chairman, Steve Miller, would step in as interim CEO of AIG for as long as it takes to identify and select a long-term replacement for Bob," the statement said.

Shares fell 21 cents to close at $41.82.