Thursday May 21, 09:53 PM
AIG chief to step down, cites 'substantial progress'
WASHINGTON (AFP) - AIG chief executive Edward Liddy has informed the company's board he wanted to step down, saying "substantial progress" had been made to stabilize the troubled US insurance giant.
Liddy, who is also company chairman, "has informed the board of directors of his intention to step down once the board successfully concludes a search for replacements for these roles," a company statement said Thursday.
He has recommended that the chairman and CEO roles be separated ahead of elections at a June 30 company annual shareholders' meeting, the statement said.
"Much work remains to be done at AIG, but much has already been accomplished," Liddy said in the statement.
"With the financial assistance of the Federal Reserve Bank of New York and the US Department of the Treasury, we have made substantial progress in stabilizing AIG, reducing the systemic risk that led the government to rescue the company, protecting our policyholders and our businesses, and developing a plan to repay American taxpayers," he said.
"I am proud that we are now implementing this repayment plan. As we have noted repeatedly, our pace of success will depend on global economic conditions and financial markets.
"It is likely to take several years."
Liddy said AIG should have a leadership team "committed to a similar time horizon and prepared to carry the plan to completion."
The company was on the verge of collapse late last year after backing trillions of dollars in risky financial products amid a home mortgage meltdown that triggered financial turmoil.
Liddy was named last year to head AIG as it wound down key operations after the government pumped more than 170 billion dollars into the firm to keep it afloat.
AIG was the largest single recipient of federal bailout money, giving the government a major stake in the group.
The company earlier this week announced the nomination of six new directors to stand for election at the meeting, saying "this slate will reconfigure the board so that a majority of its members will be newly elected independent directors."
Stephen Bollenbach, AIG's lead director, said in the statement that AIG now had a "durable capital structure, manageable liquidity, and is executing on a credible plan to repay the American taxpayer.
"We are deeply grateful for Ed's accomplishments and his leadership, and we wish him well in his return to retirement. He deserves it."
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