AFL-CIO Demands New AIG Chairman
The AFL-CIO, whose member unions are major stockholders in American International Group, has called on board members to remove Maurice Greenberg from his remaining post at the company.
In a letter, the labor organization asked that AIGs former CEOnow serving as non-executive chairmanbe replaced by the chairman of the board's executive committee, independent director Frank Zarb.
“From our point of view, if a CEO is considered to be a liability to the company, we just don't see how he can remain as board chairman. What AIG needs at this point is a strong, independent board leadership to respond to the crisis before the company,” said Brandon Rees, research analyst at AFL-CIO's office of investment.
AFL-CIO's view may have considerable sway, since the group advises 1,500 union-sponsored pension plans with assets of $400 billion and significant AIG shares.
“AIG needs a strong and independent board to steer the company through this transition period. We believe this will require an independent chairman who can not only ask tough questions and hold management accountable, but also earn the respect of regulatory and legal authorities,” the AFL-CIO letter said. “We therefore write as an institutional investor to urge the election of AIG director Frank Zarb as chairman of the board.”
Reproduced from National Underwriter Edition, March 25, 2005. Copyright 2005 by The National Underwriter Company in the serial publication. All rights reserved.Copyright in this article as an independent work may be held by the author.
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