Changes at AIG as CEO Sullivan is Replaced
This morning Wall Street welcomed Sunday's resignation of American International Group (AIG) CEO Martin Sullivan as stocks of the world's largest insurer rose in early morning trading. Sullivan has been replaced by Robert Williamstad.
Former CEO Sullivan had come under intense criticism since AIG recently announced billions of dollars in write-downs from losses after he and the company assured investors the write-downs would be minimal.
Robert Willumstad, 62, chairman of New York-based AIG, and now CEO, called AIG's two record quarterly losses "unacceptable'' and promised a "thorough'' review of strategy and operations.
The biggest questions facing Willumstad are should AIG be broken up, how will investor confidence be restored, will AIG need to raise more capital and will other management changes be needed.
Published on June 16, 2008
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