AIG Says Stockholders Will See A June Dividend
By Michael Ha
NU Online News Service, March 16, 4:14 p.m. EST
The company had previously announced that the quarterly cash dividend going out on Friday would be 12.5 cents per share, a 66.7 percent increase over the prior quarterly payment.
AIG on Monday replaced its longtime chief executive Maurice Greenberg with co-chief operating officer Martin Sullivan amid growing regulatory probes.
Standard & Poor's credit analyst Grace Osborne said the company's cash dividend staying at the increased level, as expected, shows that AIG is maintaining its status quo and that there are no short-term liquidity concerns.
Mr. Greenberg's post was changed to that of non-executive chairman and it was reported today in the Wall Street Journal that the company board might ask him to leave by May.
Because of his close control of the company, Mr. Greenberg is said to be under scrutiny for his role in income-smoothing transactions the company has engaged in.
After declining yesterday, AIG shares, which trade on the New York Stock Exchange, moved upward. In late afternoon trading they sold at $62.60, a gain of 68 cents.
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