American International Group’s (AIG) board of directors is “actively engaged in the process of identifying the right individual to serve” the role of the company’s next CEO, its chairman said in a letter sent to shareholders yesterday.


In AIG’s 2016 annual report to company shareholders, non-executive chairman of the board Douglas Steenland said that the company’s board and management “believe strongly that [they] are on the right strategic path.” Steenland also wrote that the company is expecting to “gain the benefit” of actions it had taken in 2016, with a “significantly improved risk profile and more efficient cost base.”

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AIG announced outgoing CEO Peter Hancock’s resignation in early March. The statement followed a number of setbacks that have plagued the company in recent times, particularly the US$3 billion loss it took in the last quarter.

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Hancock will receive a US$5 million windfall on top of his exit pay once he vacates the position. The outgoing executive, however, will not pick up a short-term incentive award for 2016 worth about US$3.2 million; the reason why this incentive was waived has yet to be disclosed.