AIG to Bring In New Finance Team, Says Shareholder Eli Broad
Former American International Group Inc. (AIG) director Eli Broad, whose letters to the company preceded the departure of its chief executive officer, said the world's largest insurer will bring in a "new team'' to manage finances.
AIG, which is looking for a chief financial officer after write-downs led to quarterly losses totaling $13 billion, may add other leaders to help manage the carrier, Broad said yesterday in an interview.
"You're going to see a whole new team of executives at AIG, especially in the finance and investment area,'' said Broad, 75. The billionaire investor said he "recently'' advised new CEO Robert Willumstad to select someone the "financial community really respects on the board to chair an investment committee.''
Willumstad replaced Martin Sullivan on June 15 as shareholders including Broad called for new leadership after the company lost half its market value this year amid write-downs tied to the subprime mortgage market collapse. Willumstad said June 16 he will "upgrade management talent'' as he examines New York- based AIG's units.
Willumstad, 62, "recognizes that the board needs some additional strength,'' Broad said during the interview in New York. "There's no one on the board that's got deep investment experience.''
The departure of Maurice ``Hank'' Greenberg, Sullivan's predecessor, in 2005 along with former CFO Howard Smith "didn't leave much of a bench,'' Broad said.
AIG spokesman Chris Winans declined to respond to Broad's comments.
Published on July 2, 2008
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