Directors of AIG are set to discuss whether to penalise or oust president and CEO, Peter Hancock, over a setback in the business’s turnaround plans, according to reports.
The Wall Street Journal has reported that 15 directors are expected to debate on the potential action against Hancock at a board meeting next month. The publication cites sources familiar with the matter.
In addition, the publication reports that the insurer could cut Hancock’s bonus, or remove him from the firm, but warned that it is premature to predict any outcome at this point.
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AIG is in the midst of a two-year restructuring plan and is looking to return US$25 billion to shareholders while trimming its property and casualty businesses and dropping unwanted assets.
The fourth quarter marked a midpoint but saw losses widen to US$3.04 billion for the quarter which ended December 31, up from US$1.84 billion.
“AIG’s Board of Directors and management team have agreed on a clearly defined transformation plan for the company to deliver high quality, sustainable earnings,” the company said in a statement, reported on by Reuters.
“At this point every year, we actively review our past and future expected performance against our plan, and this year is no exception.”
Pressure from billionaire investors Carl Icahn and John Paulson over the last two years led to the restructuring plan, which has seen the company return US$14.3 billion to shareholders already.
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