AIG adopts corporate governance plans

In response to recent calls for corporate transparency in the insurance industry and a trend toward improved governance, the American International Group Inc. (AIG) has adopted new guidelines for board members oversight.
The company’s board of directors move toward protecting against its board member oversight, includes a mandate that director nominees must participate in an uncontested election, in which they must receive a greater number of “for” than “withheld” votes. IF the “withheld” votes are greater, the member may be forced to resign.
This new guideline also demands that AIG must publicly announce these resignations.
In addition to this decision, the board has also created a mandatory age of retirement for directors older than 73 at which time they are not contenders for election.
However, the board states that in certain circumstances they can waive the afe limitation for one year.
AIG also reports that Michael H. Sutton, former chief accountant for the Securities and Exchange Commission, has been hired to sit on the Company’s audit committee.
AIG also recently hired former chairman of the SEC Arthur Levitt, to serve as a special advisor to the board.
“AIG is taking continuing steps to strengthen corporate governance, increase transparency and improve disclosure,” Martin J. Sullivan, AIG president and ceo was recently quoted as saying.