AIG trustees nominate 5 directors
NEW YORK - American International Group Inc.'s trustees overseeing the government's stake in the insurer have selected five executives to overhaul the money-losing company's board.
The candidates for director will be listed in AIG's proxy to be issued within a week and are expected to be elected at a shareholder meeting, possibly in June, said Douglas Foshee, one of the trustees, in testimony before the House Committee on Oversight and Government Reform. AIG will also nominate one new board member, he said.
The trustees are under pressure from Congress to protect the government's investment in the firm. Yesterday's hearing was the first joint public appearance for the trustees since they were appointed in January.
Chief executive Edward Liddy told the committee he doesn't expect to need more aid. By selling units or holding stock offerings for businesses, the company can pay back a $40 billion stock investment and more than $40 billion in loans from a credit line within five years, Liddy said.
The five selected by the trustees are Delphi Corp. chairman Steve Miller; ex-Northwest Airlines chief Doug Steenland; Christopher Lynch, a retired partner at consultant KPMG International; former American Express Co. chief Harvey Golub; and Arthur Martinez, ex-Sears Roebuck & Co. chief, said a person familiar with the matter.