Investors fear AIG succession plan
A new CEO could threaten firm’s turnaround strategy
For nearly two months, American International Group (AIG) has planned to replace its CEO, but a successor has yet to be named, creating a void that has fuelled investor concern about the insurance company’s future. AIG was to report its first-quarter earnings on Wednesday and analysts and investors said they wanted to know more about AIG’s succession plans. CEO Peter Hancock announced on March 9 that he would depart once the board found a replacement, citing a lack of confidence among directors and investors. But AIG has said little about the board’s progress since then. Chairman Douglas Steenland has said the board remains committed to the turnaround effort, but analysts are doubtful over whether a new CE would carry out Hancock’s strategy. "We need to know," said Sandler O’Neill analyst Paul Newsome of the upcoming CEO pick. "The lack of a CEO puts the strategy for the company completely in play. There’s a very large chance that with a different CEO, you are going to have a change...
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