March 29, 2005 by Canadian Underwriter
The retirement of AIG CEO and chairman Maurice “Hank” Greenberg at the end of this week will be a complete on. Despite an earlier statement that Greenberg would remain as non-executive chairman of the company while stepping down as president and CEO, AIG says it has received a letter from Greenberg stating he will not stand for re-election as chair.
In the interim, lead board director Frank Zarb will step in as chairman.
The letter, written by board counsel David Boiles on behalf of Greenberg, says the man who led AIG for 35 years wants to “promptly and cooperatively resolve all inquiries and investigations by regulators and other authorities”. “In order to lead meaningful changes in the industry and at AIG, the company and its officers and directors must resolve any outstanding questions or issues to move forward.”
Most recently, AIG has faced regulatory scrutiny over certain finite reinsurance transactions.
Boiles also writes of Greenberg’s concern over “members of the board or their representatives prematurely and selectively leaking to the press (sometimes accurately and sometimes inaccurately) what has been discussed and proposed at meetings of members of the board without the press release ad SEC filing required to accurately convey material information to the entire market”.
Greenberg’s formal retirement is expected Wednesday or Thursday of this week, upon his return to the U.S. from a two-week trip to Asia and Europe, AIG reports.