2 min read
Journalism of Courage
Premium
This is an archive article published on December 15, 2009
AIG is too large and needs to shrink,says its chief
American International Group's chief executive Robert Benmosche has said the insurance company is too big and complex to manage and needs to shrink.
American International Group8217;s chief executive Robert Benmosche has said the insurance company is too big and complex to manage and needs to shrink.
In an interview to the 8216;Wall Street Journal8217;,Benmosche said that AIG,in its current form,is too large. 8220;I feel strongly that AIG is too big today 8212; it is extremely complex to manage and we need to make sure it8217;s more transparent,that it8217;s smaller,and that we can make it on our own.8221;
The 65-year-old chief executive,who took the top job at AIG in August,has slowed down asset sales at the insurer but still sees such sales,and competitive employee compensation,as key to the insurer8217;s goal of repaying about USD 90 billion it owes to the US government 8211;a process he says would take years.
Besides,the report cited Benmosche as saying that top executives at AIG have been struggling financially in the backdrop of global financial crisis.
He further told WSJ that 10 individuals who report directly to him have lost a combined USD 168 million in prior years8217; pay since the US bailout of AIG in September 2008.
Another five employees at AIG8217;s financial-products division,who are unwinding its derivative trades,have lost USD 88 million in prior pay.
Advertisement
Live Blog
PHOTOS
Top Stories
Advertisement
Must Read
Advertisement
Buzzing Now
- 01
- 02
- 03
- 04
- 05
Advertisement