AIG Directors to Discuss Whether to Penalize or Oust CEO Over Fourth-Quarter Results
February 27 2017 - 1:50PM
Dow Jones News
By Joann S. Lublin, Leslie Scism and David Benoit
Directors of American International Group Inc. are trying to
determine whether to blame -- and possibly replace -- Chief
Executive Peter Hancock following a major setback in the insurance
giant's turnaround plan, people familiar with the matter said.
Mr. Hancock's 15 fellow directors are expected to debate at an
early March board meeting various potential actions, including
cutting his bonus or removing him, some people said. Some cautioned
it is premature to predict any particular outcome at this point,
and that the board will look broadly at management's role.
The discussion marks a sign of lessened board support for the
58-year-old Mr. Hancock, who has run the giant insurer for more
than two years. It is fallout from a $3.04 billion fourth-quarter
loss, one of AIG's worst results since the U.S. government bailed
it out during the financial crisis.
The stock fell 9% on the Feb. 14 earnings announcement and
additional bad news the next day: lowered targets for improving two
closely watched profit measures.
Directors want to know "how did this happen, and who, if anyone,
should be held accountable for this?" one person said.
In response to a request for comment from Mr. Hancock and the
board's chairman, Douglas Steenland, AIG said that "AIG's Board of
Directors and management team" are focused on their "clearly
defined transformation plan for the company to deliver high
quality, sustainable earnings."
The statement added, "At this point every year, we actively
review our past and future expected performance against our plan,
and this year is no exception."
Write to Joann S. Lublin at joann.lublin@wsj.com, Leslie Scism
at leslie.scism@wsj.com and David Benoit at
david.benoit@wsj.com
(END) Dow Jones Newswires
February 27, 2017 13:35 ET (18:35 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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