At first glance, the chairmanship of American International Group is a job no sane person would want.
Ask outgoing chief Edward M. Liddy, who became chairman and CEO after the government bailout of the company last fall. In stepping down after less than a year at the helm of the embattled insurance company, Liddy recommended that his responsibilities be split in two.
The company board complied, naming former MetLife chief Robert Benmosche as chief executive. Yesterday, directors chose Harvey Golub, former CEO of American Express, as chairman.
Harvey Golub
Golub will head a board that has been overhauled during the past year. Only two current directors, Morris Offit and George Miles, joined the board before 2008.
Like Golub, the new directors are corporate veterans. Among them are Delphi Chairman Robert “Steve” Miller, who has years of experience leading troubled companies in beleagured industries.
Other newcomers include Douglas Steenland, former CEO of Northwest Airlines; Laurette T. Koellner, a former senior vice president at Boeing; Christopher Lynch, a retired KPMG partner; and Arthur Martinez, former head of Sears, Roebuck.
Golub, 70, brings significant experience. He headed American Express from 1993 to 2001. He chaired Campbell Soup until last month, and still serves as a director. He also chairs Reader’s Digest and the private equity firm, Ripplewood Holdings. He previously was a senior partner at McKinsey & Company.
Yet none of the companies on Golub’s curriculum vitae has faced the magnitude of financial problems or government involvement of AIG. The government now holds 80 percent of the company after providing $182 billion in bailout money.
Nevertheless, AIG today reported its first profit in nearly two years. The company earned $1.8 billion in the second quarter, compared to a loss of $5.4 billion a year ago.
AIG has sold off many of its smaller and mid-sized businesses. Last month, its U.S. life insurance financing operations went for $680 million and its 21st Century Insurance Group sold for $1.9 billion.
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