With Shares Battered, A.I.G. Ousts Leader

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Source: New York Times

With Shares Battered, A.I.G. Ousts Leader

By JONATHAN D. GLATER
Published: June 16, 2008

For the second time in three years, the board at American International Group, the giant insurance company, has responded to its falling stock price and to regulatory concerns about its accounting by replacing its chief executive.

Martin J. Sullivan, who was named chief executive in 2005 after an accounting scandal claimed his predecessor, was removed by the board at a closed-door meeting on Sunday, according to a person briefed on the board’s deliberations.

Robert B. Willumstad, chairman of the company’s board and a former top executive at Citigroup, was named as Mr. Sullivan’s successor, this person said.

The board also named Stephen F. Bollenbach, a member of the A.I.G. board and a former chief executive of Hilton Hotels, as the board’s lead director, this person said.






Read more: http://www.nytimes.com/2008/06/16/business/16insure.html?exprod=myyahoo