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AIG board considers CEO change

  • Publish Date: Posted about 7 years ago

American International Group Inc's directors are discussing whether to remove its chief executive, Peter Hancock, over a major setback in the insurance firm's turnaround plan. Fifteen directors are expected to debate on various potential actions at a board meeting in early March. The goals for AIG's two year restructuring plan include returning $25 billion to shareholders and becoming a "leaner, more profitable and focused insurer" by trimming its property and casualty business and shedding unwanted assets. AIG's fourth quarter marked a critical midpoint in the ambitious two-year strategic plan aimed at turning the company around. AIG's net loss widened to $3.04 billion, or $2.96 per share, in the fourth quarter, from $1.84 billion, or $1.50 per share, a year earlier. The company said in a statement, "AIG’s Board of Directors and management team have agreed on a clearly defined transformation plan for the company to deliver high quality, sustainable earnings. At this point every year, we actively review our past and future expected performance against our plan, and this year is no exception." The restructuring plan, unveiled early last year, followed pressure from billionaire activist investors Carl Icahn and John Paulson in 2015 to split the company in three because of AIG's poor performance that year. By slimming down, AIG could shed its designation as a non-bank systematically important financial institution.