Published on Thu, Nov 12, 2009 at 08:51 | Source : Reuters
Updated at Thu, Nov 12, 2009 at 17:02
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AIG could weather CEO departure
American International Group Inc's tough talking chief executive has reportedly threatened to quit, but the giant insurer, which is showing signs of life after its brush with bankruptcy last year, could do fine without him.
American International Group Inc's tough talking Chief Executive has reportedly threatened to quit, but the giant insurer, which is showing signs of life after its brush with bankruptcy last year, could do fine without him.
Robert Benmosche threatened to quit AIG in part because he complains he cannot pay employees enough, according to the Wall Street Journal.
AIG declined comment, but in a letter to employees Benmosche said he was working aggressively to "overcome this compensation barrier that stands in the way of restoring AIG's value."
He also said he was "totally committed" to seeing the company through its difficulties.
As a recipient of some USD 180 billion in government aid, AIG falls under the purview of Obama administration compensation czar Kenneth Feinberg and Benmosche has balked at Feinberg's proposed pay restrictions.
But if Benmosche, the well regarded former CEO of MetLife Inc makes good on his reported threats to leave AIG, it would hardly be a tragedy for the company, analysts said. He has been at the insurer for only about three months, which is not enough time for him to have become essential for its daily operations. And Wall Street is full of competent executives looking for work.
"The loss of one chief executive won't change too much for AIG," said Sean Egan, principal of ratings agency Egan-Jones Ratings Co in Haverford, Pennsylvania. "There are plenty of other people who can fill the role."
